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 Fortune Brands Home & Security (FBIN -1.49%) jumped as much as 11% in early trading after the company released earnings.
So what: First quarter sales rose 11%, to $890 million, and adjusted earnings per share tripled to $0.24. Analysts only expected $862.5 million in revenue, and $0.16 in earnings per share. To top it off, management raised its full year earnings outlook to $1.23 to $1.33 per share, at the top end of estimates.
Now what: Fortune will also acquire WoodCrafters Home Products, a maker of bathroom vanities. The numbers today were great, but the stock's value is what I'm worried about right now. Shares are trading for at least 30 times 3013 estimates, which is a steep price for Fortune, even with double-digit growth.
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