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 construction service provider Hill International Inc (HIL) dropped 15% today after reporting earnings.
So what: First-quarter revenue was up 10% from a year ago to $150.0 million, driven by a 12% increase in consulting fees to $137.2 million. But the company made a measly $53,000 in profit, or nothing per share, and analysts were expecting a penny per share profit.
Now what: Hill International is still growing nicely and expects consulting fee revenue to be $575 million to $600 million this year, indicating 12% to 17% growth. But investors are expecting more progress on the bottom line than the company is giving right now. I wouldn't panic over a small earnings miss, but management must show the ability to make a profit later this year, or the stock could have further to fall.
