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 technical and management support services specialist AECOM Technology (NYSE:ACM) plunged 12% today, after its quarterly results and guidance missed Wall Street expectations.
So what: The stock has rallied in recent months on a string of new contract wins, but a small third-quarter revenue miss -- $2.08 billion versus the consensus of $2.2 billion -- coupled with downside guidance for the full year, is forcing Mr. Market to dial back his expectations. While AECOM's EBITDA margins came in at a record 12%, persistent weakness in the global economy continues to weigh on demand.
Now what: Management sees full-year 2013 EPS of $2.40 to $2.50 on flat year-over-year revenue of $8.2 billion, below the consensus of $2.59 and $8.6 billion. "Our results clearly demonstrate the progress that we've made to drive a performance culture committed to improved growth, profitability and liquidity," Chairman and CEO John Dionisio reassured investors. With the stock now off 20% from its 52-week highs and trading at a forward P/E of about eight, now might even be an opportune time to buy into that optimism.
Interested in more info on AECOM? Add it to your watchlist.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.