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 construction company Granite Construction (NYSE: GVA) fell more than 10% today after the company released a disappointing earnings report.
So what: Revenue rose 21% from a year ago to $310 million and net loss was $12 million, or $0.31 per share. The loss was $0.08 more than analysts had expected, and the market obviously reacted negatively as a result.
Now what: To be fair, this is a slow time of the year for Granite, and a loss was expected. The company also crushed earnings estimates the past two quarters, so investors may have gotten a little ahead of themselves. Volume is still up, the company is growing, and with shares trading at 12 times forward earnings, I wouldn't be selling this sell-off today.
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