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 temporary worker specialist SFN Group
So what: SFN did a better job in the first quarter of turning its revenue into profits as it reversed a loss from last year, matching analysts' earnings per share estimates. The company's revenue also moved in the right direction, rising 8.1% year over year to $500 million. That revenue tally, however, was short of Wall Street's $525 million target.
Now what: The look ahead to the next quarter isn't much more encouraging from a top-line perspective. At the midpoint of management's guidance, the company would see 3.5% year-over-year revenue growth during the quarter, which would put sales at $532 million -- once again short of Wall Street's estimates. The company does expect that it will continue to improve profitability, but it appears that investors were expecting growth a bit more robust than what SFN has been able to muster.
Want to keep up to date on SFN Group? Add it to your watchlist.