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 metals company Carpenter Technology (CRS 1.68%) jumped 12% today after reporting earnings.
So what: Revenue fell 5% from a year ago to $611.8 million and was short of the $620.8 million estimate from analysts. The good news is that net income was up slightly to $40.9 million, or $0.77 per share, which was $0.07 ahead of estimates.
Now what: Management is optimistic about industry conditions in fiscal 2014 but doesn't expect a rebound over the next quarter or two. With shares trading at 20 times earnings and little growth on the horizon I think the stock is too expensive to buy for the time being. Keep an eye on revenue momentum over the next year and if it turns positive the investing thesis may change.
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