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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 construction firm Foster Wheeler (NASDAQ: FWLT ) dropped 16% today after the company reported earnings.
So what: Revenue fell a whopping 35% from a year ago, to $735.3 million, way below the $981.7 million estimate. Earnings were also weak, and even when you pull out one-time items earnings per share of $0.27, they fell well short of the $0.46 that analysts expected.
Now what: Management said to expect flat results as a mild economic recovery takes place. The company expects earnings of about $1.54 per share next year, when analysts expected $2.03, so that didn't help matters, either. Shares trade at 13 times the company's 2013 estimate and, given the direction of results, that's still too expensive for me to jump in today.
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