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 diversified manufacturer Ingersoll Rand
So what: The guidance cut was so big -- management now expects per-share operating earnings of $0.77-$0.80 versus its prior view of $0.85-$0.95 per share -- that it's hard to blame Mr. Market for wanting to heavily discount the stock. In fact, Ingersoll shares are hitting their lowest level in more than two years on this news.
Now what: Expect more short-term pain for the entire space. Ingersoll's downside guidance doesn't exactly bode well for manufacturing gorillas like General Electric
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