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What: Shares of supply chain service provider UTi Worldwide (UNKNOWN:UTIW.DL) jumped as much as 14% in early trading after the company released earnings.
So what: Revenue fell slightly, to $1.15 billion, and barely came in ahead of estimates. After pulling out severance costs and an added tax expense, earnings per share were $0.08, in line with estimates.
Now what: Shares have settled to a 6% gain in late trading, because this wasn't really a blowout quarter. In fact, the reaction looks more like relief that things weren't worse, rather than excitement about earnings. UTi is still emerging from a string of regular losses, and is expecting strong earnings growth next year. But I'd be cautious right now, because estimates are falling, and the drop in revenue suggests that the company may not be performing at peak condition.
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.