Watch stocks you care about
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
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 technical service company Furmanite (NYSE: FRM ) dropped as much as 13.5% today after the company reported earnings. At the close of trading, shares had recovered to just a 4.8% decline on the day.
So what: Third-quarter revenue was up 32% from a year ago to $99.5 million and net income swung from a loss to a profit of $2.1 million, or $0.06 per share. The only analyst covering the stock expected $96.0 million in revenue and earnings of $0.07 per share, so results are mixed versus those expectations.
Now what: Management did keep earnings guidance of $0.44 to $0.48 per share intact, so that's positive for investors. I think the sell-off definitely got ahead of itself because Furmanite is just starting to see operational improvements put in place by management. There's clearly a lot of upside from expanding margins and, at 22 times the top end of this year's estimate, I think shares have upside as operations improve.
One stock worth a second look
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2013." To find out which stock it is and read our in-depth report, simply click here. It's free!