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 specialty minerals manufacturer Amcol International
So what: Despite a double-digit rise in revenue, Amcol's second-quarter profit fell 16% to $0.43 per share, versus the average analyst estimate of $0.56 per share. "Our gross margins deteriorated in each of our three major business segments," said CEO Ryan McKendrick, "and led to our disappointing earnings in the second quarter."
Now what: Investors should expect more short-term turbulence. For the rest of the year, management said it expects upgrades at its chrome sand operations to lead to losses of between $0.08 and $0.12 per share. And it sees continued margin pressure at its oil-field services segment. Of course, with the stock down about 20% over the past two weeks, and now sporting a dividend yield of 2%, much of Amcol's risks might already be priced in.
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