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 workplace-furnishings manufacturer Knoll
So what: The economic recovery has been painfully slow, but conditions improved enough to help significantly boost Knoll's business. For the fourth quarter, the company saw revenue jump 30% from last year, and a minimal increase in expenses led to a hefty 112% jump in operating profit. Total revenue of $240 million bested the average analyst estimate of $217 million, while adjusted per-share profit of $0.26 topped the $0.22 that was expected.
Now what: The fourth quarter was a high note for what wasn't a particularly stellar year as revenue crept up 4% while operating profit increased 2%. However, the results were a relief after a tough 2009 that saw both revenue and profits tumble. Looking ahead to 2011, the company didn't provide formal guidance in its earnings release, but its backlog of $197 million, which was up 29% from the prior year, suggests demand is continuing to rebound.
Want to keep up to date on Knoll? Add it to your watchlist.
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.
Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.