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: The line went dead for shares of Russian telecom giant Mobile TeleSystems
So what: For the second quarter, Mobile TeleSystems continued to grow. Unfortunately, what was all too clear to investors was that despite the growth, net profit for the quarter came in lower than Wall Street had expected. What was also clear is that the full-year results aren't going to look as good as the company previously thought as management lowered its OIBDA (a profitability measure) margin forecast from a range of 42% to 43% to an expectation of profitability in "the low 40s."
Now what: The traders have already made their move on Mobile TeleSystems, and that's no surprise. Investors, on the other hand, may want to dig further into the financials before making a rash decision one way or the other. Though the company's earnings press release is pretty devoid of numbers, there's a fantastic spreadsheet with its full financials on its investor relations website. Obviously of particular note for investors as they pick apart the situation is that the company's profitability has been steadily falling over the past few years.
Want to keep up to date on Mobile TeleSystems? 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 have a financial interest in 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 Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.