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 pharmaceutical product distributor Aceto Corporation (NASDAQ: ACET ) fell 16% today after reporting earnings.
So what: Fiscal third-quarter sales fell 17% from a year ago, to $124.8 million, and net income dropped 29.5%, to $5.4 million, or $0.19 per share. The one revenue estimate from Wall Street was for $136.7 million, and two earnings estimates were for $0.28, so performance was much lower than the bar they set.
Now what: Management said that much of the decline in revenue and earnings was due to timing, and a long-term view shows a better picture. For the first three quarters of the fiscal year, net income increased to $23.4 million from $16.9 million a year ago. I actually agree that a longer-term view is needed here and investors willing to buy on the dip today will be getting a deal on the stock.
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