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 suit retailer Men's Wearhouse
So what: Earnings for the third quarter were fine, with revenue increasing 19% to $550.1 million and net income rising to $25.3 million. But investors are focusing on the fourth quarter, when the company is expecting an adjusted loss of $0.19 to $0.22 -- far below analyst estimates of a $0.05 loss.
Now what: The fourth quarter is usually a weak quarter because shoppers focus on gifts instead of new suits, but this year, Men's Wearhouse is expecting an especially bad year. Given the strong growth we saw this quarter, I think the poor guidance could be giving investors a chance to get into this retailer at a much better price. Investors focused on the long term can overlook one bad quarter, especially in a company’s weakest season.
Interested in more info on Men's Wearhouse? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.
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.