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 industrial supplier Raven Industries (RAVN) fell as much as 11% today after reporting first-quarter results.
So what: Revenue fell 12% to $103.7 million, missing the $112.6 million estimate. As a result, net income fell 26% to $14.0 million, or $0.38 per share, which was $0.06 below estimates.
Now what: Management expected headwinds, but they were a little stronger than anyone thought, which led to the big miss. The good news is that costs were controlled well, leading to a smaller miss on the bottom line than you might expect, with a 12% drop in revenue. Still, I don't see a reason to buy the discount until we see conditions improving on both the top and bottom line.
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