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 cell phone distributor Brightpoint
So what: Adjusted earnings per share reached $0.34, beating estimates of $0.23 by analysts. The real surprise, however, was the company's 2011 outlook of profit between $0.90 and $1.05 per share, beating out Wall Street's expectation of $0.87.
Now what: While shareholders should be excited about these results, the 32% rise in share price seems a little excessive given the fact the company has beaten expectations the last four quarters. Still, if the company is able to reach the top of its guidance range its forward P/E of 12 is still a good value. I think the market exuberance will die down in the next few days, giving investors looking to get in a better entry point.
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