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 3-D printer maker The ExOne Company (NASDAQ: XONE ) fell 10% today after reporting disappointing earnings.
So what: Fourth-quarter revenue fell 16% to $10.7 million and the company swung from a $900,000 profit to a $3.2 million loss. On an adjusted basis, the loss was $0.19 per share but that fell well below the penny profit that analysts expected.
Now what: The fourth-quarter results were bad but the worst news may have been disappointing guidance. Management only expects $55 million-$60 million in revenue next year, which is below $61.6 million estimates and probably puts the $0.25 per share profit estimate in question.
This is the danger with owning highly priced stocks like this. Shares are still trading at 10 times 2014's expected revenue, and with the loss last quarter and competition heating, up I'll gladly sit and watch this stock from the sidelines.
Don't give up on growth
ExOne may no be a great buy today but there are still great growth opportunities out there. Motley Fool co-founder David Gardner has proven the ability to pick them time and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.