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 industrial supplier Harsco
So what: The earnings results were mixed in the second quarter, with sales falling 12%, below estimates, but adjusted earnings per share were $0.08 ahead of estimates at $0.43. The downside is that the company expects third-quarter adjusted earnings per share of $0.32 to $0.38, below the current $0.46 estimate.
The other big news is that Harsco hired Patrick Decker away from Tyco International to be the company's next CEO.
Now what: The CEO hire is probably overshadowing a disappointing guidance this quarter. The company has had an interim CEO for six months, and this hire gives some stability. The CEO news is good for sure, but I'd like to see financial conditions improve before getting too excited. Decker will take a while to implement his vision for the company, so I'd want more stable results before jumping on a company that is seeing revenue go in the wrong direction.
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