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 paper maker PH Glatfelter (GLT -1.21%) fell 10% today after reporting earnings.
So what: Third quarter sales were up 13% from a year ago, to $456.6 million, and net income was up 70% to $34.1 million, or $0.77 per share. On an adjusted basis, earnings were $24.4 million, or $0.55 per share, falling two cents below estimates. Revenue was also slightly below estimates.
Now what: There weren't any glaring flaws in the quarter, it's just that expectations got ahead of the company's results. When we take a step back though, we see that shares only trade at 13 times next year's earnings estimates, which isn't bad for a company expected to grow 9% next year. I think this is a buying opportunity for investors today after dropping on only a slight miss to Wall Street's guess at earnings.
