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 construction service provider Hill International Inc (NYSE:HIL) dropped 15% today after reporting earnings.
So what: First-quarter revenue was up 10% from a year ago to $150.0 million, driven by a 12% increase in consulting fees to $137.2 million. But the company made a measly $53,000 in profit, or nothing per share, and analysts were expecting a penny per share profit.
Now what: Hill International is still growing nicely and expects consulting fee revenue to be $575 million to $600 million this year, indicating 12% to 17% growth. But investors are expecting more progress on the bottom line than the company is giving right now. I wouldn't panic over a small earnings miss, but management must show the ability to make a profit later this year, or the stock could have further to fall.
Will this stock be your next multi-bagger?
Give me five minutes, and I'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 outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of 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% over the subsequent years! Believe me, 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.
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.