Why World Fuel Services Shares Dropped

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 fuel logistics provider World Fuel Services (NYSE: INT  ) were getting dumped today, falling as much as 12%, after missing revenue expectations in its quarterly report.

So what: Adjusted earnings per share of $0.73 actually beat estimates of $0.69, but that was down from the total a year ago of $0.81. Revenue grew only 5% from the previous year, to $9.94 billion, missing estimates of $10.22 billion. CEO Michael Kasbar put a positive spin on the full-year results, saying that, "despite a stagnant market, we posted record revenue, gross profit, and volume while completing two strategic acquisitions."

Now what: World Fuel's acquisitions should help it continue to grow, but this company is primarily dependent on volatility and increases in oil prices. With the slowdown in Europe, modest recovery in the U.S., and energy markets seemingly stable, I wouldn't expect anything more than modest returns in the near future.

Want more on World Fuel Services? Add the company to your Watchlist by clicking right here.


Read/Post Comments (0) | 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.

Be the first one to comment on this article.

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: 2272651, ~/Articles/ArticleHandler.aspx, 8/23/2014 2:05:02 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...


Advertisement