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 offshore services provider Tidewater (NYSE:TDW) plunged 10% today after its quarterly results disappointed Wall Street.

So what: The stock has rallied nicely in 2013 on better than expected vessel demand, but today's Q2 results -- revenue increased 14% but EPS of $0.61 widely missed Wall Street's view -- are forcing investors to sober up. In fact, vessel operating margins for the quarter slipped 400 basis points year over year to 41%, suggesting that its competitive position is slipping a bit.

Now what: I'd look into this pullback as a possible buying opportunity. Much of the quarter's charges were tied to its recent acquisition of Troms Offshore Supply and a settlement with the Customs Department of Equatorial Guinea, so it would seem that the pressure is just short term in nature. So when you couple the long-term factors still working in Tidewater's favor -- global increase of offshore drilling and a relatively young fleet -- with its suddenly cold stock price, Tidewater might be worth checking out.


Fool contributor Brian Pacampara 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.