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 engineering contractor Ducommun (DCO +2.91%) fell 17% today after the company reported disappointing earnings.
So what: Sales fell 1.5% to $181.3 million in the quarter, while net income dropped from $5.1 million to $4.6 million, or $0.42 per share. Both figures were short of estimates, with earnings falling a nickel below expectations.
Now what: Management said the non-aerospace and defense business is what hurt results, declining 25%. The good news is that that's a pretty small portion of the company's revenue, hence the 1.5% decline in revenue overall. However, I don't see a lot of improvement across the company's other businesses, which will keep me out of the stock today. For 15 times trailing earnings I expect a little more than declining earnings and bottom line results.
