Why Shares of PGT, Inc. Dropped Today

Is this meaningful or just another movement?

May 8, 2014 at 4:40PM

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 PGT (NASDAQ:PGTI) fell 15% today after reporting earnings.

So what: First quarter revenue was up 26.6% to $62.7 million, and net income was up slightly to $3.4 million, or $0.07 per share. But that fell a penny short of expectations, and that was enough to sink the stock today.  

Now what: Earnings may have been a bit lighter than expected, but long-term I don't think there's a big reason to change your investment thesis. Revenue is growing quickly and SG&A costs are falling as it does. Margin pressure in the quarter was a result of lower pricing on a big project and purchasing glass from third party vendors, but a new glass plant will be completed this year and should help margins. Long-term I think the investment thesis is still in place, and this isn't a day to sell shares after a small earnings miss.

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Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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