Why CAI International's Shares Dropped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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 CAI International (UNKNOWN: CAP.DL  ) fell as much as 14% today after the company released earnings.

So what: Revenue jumped 29% in the quarter, to $51.0 million, coming just short of the $51.4 million estimate. Net income was up 12%, to $16.1 million, or $0.71 per share, falling short of the $0.76 estimate from Wall Street. 

Now what: Rental revenue drove the large revenue increase as management continues to buy assets. One of the big downsides was that utilization fell in the quarter, something management expects to remedy as the year goes on. I don't think the quarter was as bad as the market does today, and think a 6.3 forward P/E ratio is low enough to buy on today's discount.

Interested in more info on CAI International? Add it to your watchlist by clicking 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.

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: 2387898, ~/Articles/ArticleHandler.aspx, 9/26/2016 10:28:33 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 Moments ago Sponsored by:
DOW 18,141.22 -120.23 -0.66%
S&P 500 2,154.96 -9.73 -0.45%
NASD 5,273.92 -31.82 -0.60%

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

12/31/1969 7:00 PM
CAP.DL $0.00 Down +0.00 +0.00%
CAI International CAPS Rating: **