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 contractor Pike Electric (NYSE: PIKE) fell 13% today after the company released earnings.
So what: Fiscal-third-quarter revenue rose 23% to $200 million but fell short of the $204 million estimates analysts had set. Earnings per share were up 33% to $0.08, but that also fell short of estimates, which were for $0.10 EPS.
Now what: The biggest takeaway is that construction revenue was up 16%, continuing strong trends in the transmission business. A surge in storm-related business also had a positive impact on revenue, but that's very volatile in nature so investors can't count on that quarter to quarter. I don't think results were as bad as expected and think shares will recover from today's loss as fundamentals continue to improve.
Interested in more info on Pike Electric? Add it to your watchlist by clicking here.