Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of branded apparel provider G&K Services (GK) jumped 10% today after the company released earnings.
So what: Fiscal second-quarter revenue was up 5.6% from a year ago to $229.2 million, beating expectations of $226 million. On the bottom line, the company reported earnings of $0.68 per share, which beat estimates by $0.08. It also raised fiscal 2013 guidance to earnings of $2.50 to $2.60 per share, from $2.25 to $2.25 previously.
Now what: That's the rare earnings trifecta -- beating on the top line, bottom line, and guidance. I'm a little concerned about what investors are paying after the big jump today, though. Shares trade at 15.5 times 2013 guidance, a steep price for a low level of revenue growth. I'd be a buyer on a pullback, but today it's just too expensive for me.
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