Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Exponent’s Shares Dropped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 technical consultant Exponent (NASDAQ: EXPO  ) fell as much as 13% today, after the company released earnings.

So what: Revenue rose 7%, to $65.0 million, and net income increased 10%, to $8.5 million, or $0.60 per share. But analysts expected $0.63 per share and, after beating expectations by a pretty wide margin in the previous three quarters, the earnings miss was pretty disappointing.  

Now what: This is really just a pullback from a high valuation and overinflated expectations. The company is still growing both top and bottom line results, so there's nothing investors should be panic about. I'd like to get a better value than 19 times trailing earnings considering the single-digit growth rate, so if shares fall further, there could be a nice entry point for investors.

Interested in more info on Exponent? Add it to your watchlist by clicking here.

Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 01, 2013, at 8:12 AM, stillwater9999 wrote:

    If you consider the $113 MM cash on the balance sheet the effective p/e is significantly lower.

  • Report this Comment On November 14, 2013, at 4:50 PM, Mivali wrote:

    Ten months later it was up 63%. Holding proved to be a good strategy. Waiting for it to fall a little more before getting into it might have been the best advice at the time too.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2229398, ~/Articles/ArticleHandler.aspx, 9/28/2016 1:40:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:00 PM
EXPO $50.43 Up +0.36 +0.72%
Exponent CAPS Rating: *****