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 contractor Granite Construction (NYSE: GVA ) fell 11% today after the company reported earnings.
So what: Revenue fell 6%, to $504.8 million, way below the $600.2 million in revenue that analysts had expected. That, of course, hurt the bottom line, where net income was $18 million, or $0.46 per share, below the $0.53 estimate.
Now what: The revenue miss is the most troubling because construction spending is down in the company's markets. With shares trading at 27 times trailing earnings, investors are paying a lot for a company heading in the wrong direction. I'm going to pass on the discount today until we see some significant improvement in revenue.
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