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 CAI International (NYSE:CAP) fell as much as 14% today after the company released earnings.
So what: Revenue jumped 29% in the quarter, to $51.0 million, coming just short of the $51.4 million estimate. Net income was up 12%, to $16.1 million, or $0.71 per share, falling short of the $0.76 estimate from Wall Street.
Now what: Rental revenue drove the large revenue increase as management continues to buy assets. One of the big downsides was that utilization fell in the quarter, something management expects to remedy as the year goes on. I don't think the quarter was as bad as the market does today, and think a 6.3 forward P/E ratio is low enough to buy on today's discount.
Interested in more info on CAI International? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
More from The Motley Fool
5 Things You Should Know About Filing Your 2017 Taxes
Tax season will be here before you know it. Here are some helpful points to keep in mind.
Could You Come Up With $1,000 Tomorrow? More Than 60% of Americans Can't
The majority of Americans couldn't handle an unexpected expense, such as a car repair, without borrowing the money.
Who Can Take Social Security Before Age 62?
Find out when younger people can get benefits.