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What happened

Shares of building-industry supplier NCI Building Systems Inc. (NYSE:NCS) fell as much as 12.3% on Friday after the company released earnings. As of 3 p.m. EST, shares were still down 9.9% on the day.

So what

Sales were up 4.5% to $480.3 million and net income was up 3.9% to $18.9 million, or $0.27 per share. Adjusted for one-time items, earnings were $0.28 per share; that fell three cents below expectations, which is what investors are reacting to today.

In fiscal 2017, management expects revenue to be between $1.75 billion and $1.85 billion, while EBITDA (earnings before interest, taxes, depreciation, and amortization) should be $175 million to $205 million. This indicates significant growth from $1.68 billion in revenue in fiscal 2016.

Now what

The market's first reaction is often to simply compare performance in a quarter to analyst expectations. But long-term investors should be looking at how the business is trending. And with growth in the residential market expected to be 3% to 6% next year, and NCI Building Systems' management expecting to gain market share, the future is getting brighter. Shares aren't cheap at 23 times earnings, but with sales on the rise, I think the sell-off in shares has been overdone.

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.