Why Shares of Innophos Holdings, Inc. Jumped Today

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 Innophos Holdings (NASDAQ: IPHS  ) popped as much as 13% today after reporting earnings.

So what: Sales were up 1% from a year ago and 10% sequentially to $216.3 million in the first quarter, and net income was up 14% to $14.2 million, or $0.64 per share. Earnings were a penny short of expectations, but revenue was higher than expected, and in a market where any growth is good, that's what investors are looking at today.  

Now what: Management was very bullish on the recent activity for the company after a slow start to the year because of bad weather. I would expect momentum to pick up operationally as the year goes on, and if that happens, the company's 13.6 forward P/E ratio looks attractive. Keep an eye on management's meeting those expectations the rest of the year if this momentum is going to continue.

Will this stock be your next multibagger?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with amazing potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303%! You don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (1)

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.

DocumentId: 2935786, ~/Articles/ArticleHandler.aspx, 8/1/2014 12:13:54 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...


Advertisement