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 Pall Corporation (NYSE: PLL) fell as much as 10.6% in early trading after reporting earnings and full fiscal year guidance.
So what: Fiscal third-quarter revenue fell 3%, to $641.2 million, and net income dropped 7%, to $73.1 million, or $0.64 per share. On an adjusted basis, earnings were $0.74 per share, $0.01 above expectations.
What concerned investors was the company's net income guidance for the full year of $2.95 to $3.05 per share, a reduction of $0.10 at the top end. Analysts were expecting $3.07 for the full year, so it appears the company won't hit that level.
Now what: This isn't a huge earnings miss, and it looks like early trades were a major overreaction by the market. The stock is currently down about 4%, which is probably reasonable given the numbers. But I still don't think this is a buying opportunity given the fact that revenue is down and, at best, the stock trades at 22.6 times this year's earnings.
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