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 energy industry contractor McDermott International (NYSE:MDR) fell as much as 17% after the company reported earnings.
So what: Revenue rose 11% in the first quarter, to $807.5 million, ahead of the $749.5 million estimate. But on the bottom line, the company made a $20.6 million, or $0.09 per share, profit when analysts were expecting earnings of $0.14 per share.
Now what: News for the future doesn't look much better because management said operating margins may fall to break even or worse in the second and third quarters because of a project in Australia. The company is having problems executing on projects, which is hurting the bottom line more than revenue. I don't see a reason to be a buyer today, and would wait for operations to improve before getting bullish.
Interested in more info on McDermott 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
What's Juno Therapeutics Worth to Celgene?
Celgene may be considering a multibillion-dollar bid to acquire Juno.
Why Ascena Retail Group Inc. Stock Plunged 62% in 2017
The parent company of maurices just finished a tough year. Here's what investors need to know.
3 Easy Ways to Invest in India for 2018
Here's how to get access to this exciting emerging market.