Why Checkpoint Shares Checked Out

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 Checkpoint Systems (UNKNOWN: CKP.DL  ) have plunged more than 14% today after the company reported second-quarter earnings that disappointed analysts on the bottom line.

So what: Checkpoint's revenue came in at $172 million for the second quarter, and its adjusted earnings were $0.11 per share. The top-line result was slightly ahead of Wall Street's $171.1 million consensus, but as analysts were looking for $0.18 in EPS, the bottom-line result is understandably disappointing. However, Checkpoint has raised its full-year revenue guidance slightly into the $685 million to $700 million range, which beats Wall Street's expectation of $680.9 million even on the low end. Full-year EPS guidance remains in the range of $0.65 to $0.75, which hits the $0.70 consensus right in the middle.

Now what: Checkpoint's shares have already doubled over the past 52 weeks, and this was a clear sign of profit-taking. The company's forward guidance gives it an adjusted P/E in the 20.3 to 23.5 range, which is not in screaming buy territory, but it's not in nosebleed territory, either. There might still be plenty of fuel left in this stock-price growth engine. Do some digging into the details and you might find out that Checkpoint is worth a small slice of your portfolio today.

Want more news and updates? Add Checkpoint Systems to your watchlist now.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

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: 2581440, ~/Articles/ArticleHandler.aspx, 9/29/2016 6:28:54 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 8 hours ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

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
CKP.DL $0.00 Down +0.00 +0.00%
Checkpoint Systems CAPS Rating: ***