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 Swift Transportation Co. (NYSE:SWFT) fell 16% after the company reported earnings.

So what: Revenue in the quarter was up 4.5% to $1.08 billion, and net income was down 19% to $40.2 million, or $0.33 per share on an adjusted basis. The earnings figure hit estimates on the spot, but revenue was just slightly below the $1.09 billion analysts expected and future growth may be limited after management sold some trucks in the quarter.  

Now what: Demand is strong in the truckload and CRS markets, but Swift had to deal with idle equipment because the company simply couldn't get enough drivers. That's why equipment was sold instead of sitting idle, which is a concern for long-term growth. Given the slow growth and decline in profits, I don't think today presents much of a buying opportunity and I'd wait for a performance turnaround before jumping into shares.

Risk-free for 30 days: The Motley Fool's flagship service
Tom and David Gardner founded The Motley Fool over 20 years ago with the goal of helping the world invest...better. Their flagship service, Stock Advisor, has helped thousands of investors take control of their financial lives and beat the market. Click here to sign up 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.

Compare Brokers