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 energy engineering company McDermott International (NYSE: MDR ) fell as much as 10.6% today after the company reported earnings.
So what: Fourth-quarter revenue dropped 48% from a year ago to $517 million and fell way short of the $820.1 million analysts expected. A net loss of $324 million, or $1.37 per share, was also far below the $0.15 per share profit analysts expected.
Now what: New CEO David Dickson took over late in the quarter and is already trying to streamline operations to improve long-term profitability. The short-term impact is a lot of charges related to prior projects and other write-offs. I'd like to see the operational improvement before jumping in, because the revenue and earnings figures were alarmingly bad last quarter.
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