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 parts manufacturer Timken
So what: Revenue of $1.3 billion fell well short of the $1.45 billion analysts expected and was up just 1% from a year ago. Net income, however, was $183.6 million, or $1.86 per share, well above estimates of $1.49 from analysts.
Now what: Second-quarter results were mixed but the thing investors are focusing on today is full-year earnings guidance, which the company lowered by $1.30 to a range of $5.00-$5.30 per share. At that level shares still trade at below seven times 2012 earnings; even on the low end, it's a reasonable value right now. The company may not be growing rapidly but it's still growing and with a P/E ratio of just seven I think investors are getting a good value and shares can move higher from here.
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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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