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What: Shares of textile and materials processor Albany International
So what: First-quarter sales were down 8.8% to $188.6 million and net income per share from continuing operations were just $0.03. Analysts had expected earnings per share of $0.36, so the results fell well short of what investors were expecting.
Now what: The machine clothing business was responsible for the entire decline in earnings, and management said that weak conditions in Europe were the driver. Sales are expected to rebound in the second quarter because of strong orders at the end of the first quarter, but the market is taking a cautious approach. Shares are already trading at 19 times trailing earnings, and I would like to see a marked improvement before jumping into shares right now.
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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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