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 network installation specialist Black Box
So what: Last night's second-quarter report showed record sales and an optimistic third-quarter forecast, which was enough to overcome a somewhat disappointing earnings performance. Separately, the company also won a contract to deploy a ShoreTel
Now what: Government sales were a bit slow but Black Box easily made up for that shortfall elsewhere. The company installs and helps customers manage a plethora of communications solutions, including voice, video, and unified communications products from industry giants Cisco Systems
Before I start to sound like a Black Box infomercial, let me point out that gross margins are getting thinner and long-term sales growth is modest at best. Black Box performs a welcome service in a large market, but has some work to do before becoming all that it could be.
Interested in more info about Black Box? Click here to add it to My Watchlist.