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What: Shares of Newpark Resources
So what: Revenue rose 29% to $262.3 million and earnings were virtually unchanged at $15.6 million, or $0.16 per share. The problem is that analysts had expected revenue of $269 million and earnings of $0.21 per share, hence the drop today.
Now what: Reduced activity in the dry gas business was blamed for the weaker than expected profitability and margin declines in the U.S. Raw materials also affected profitability negatively in the quarter. The results weren't great but Newpark is trading at just eight times trailing earnings and six times forward earnings so I wouldn't dump shares on the dip today. In fact, I view this as a buying opportunity as a low point in the market.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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