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 equipment maker Graco
So what: Revenue rose 8% to $234.1 million but earnings per share fell 5% to $0.58, below expectations. The results did include a $4 million charge related to the acquisition of ITW's finishing business.
Now what: The results weren't all that bad; expectations may have just gotten ahead of the company this quarter. The first quarter of last year was a record quarter and the company spent money investing in product development and invested $8 million in capital expenditures during the quarter. I think this is a blip in the long-term business and think a forward P/E ratio of 17 provides a good value after today's drop.
Interested in more info on Graco? Add it to your watchlist by clicking here.