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 specialty phosphates maker Innophos Holdings (NASDAQ:IPHS) dropped as much as 10% today after releasing earnings.
So what: First quarter sales dropped 6% to $214 million and company's earnings per share dropped from $1.22 a year ago to just $0.55. Analysts expected revenue of $230 million and earnings of $0.79 per share so this is way below expectations.
Now what: Missing expectations is bad enough but I don't like the company's trends on the top or bottom line. Earnings have now missed estimates three of the last four quarters, a sign that the stock is still overpriced. I'd be a seller today and move on to companies growing on the top and bottom line.
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Motley 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.