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 specialty phosphates maker Innophos Holdings (NASDAQ: IPHS ) dropped as much as 10% today after releasing earnings.
So what: First quarter sales dropped 6% to $214 million and company's earnings per share dropped from $1.22 a year ago to just $0.55. Analysts expected revenue of $230 million and earnings of $0.79 per share so this is way below expectations.
Now what: Missing expectations is bad enough but I don't like the company's trends on the top or bottom line. Earnings have now missed estimates three of the last four quarters, a sign that the stock is still overpriced. I'd be a seller today and move on to companies growing on the top and bottom line.
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