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 pharmaceutical product distributor Aceto Corporation (NASDAQ:ACET) fell 16% today after reporting earnings.
So what: Fiscal third-quarter sales fell 17% from a year ago, to $124.8 million, and net income dropped 29.5%, to $5.4 million, or $0.19 per share. The one revenue estimate from Wall Street was for $136.7 million, and two earnings estimates were for $0.28, so performance was much lower than the bar they set.
Now what: Management said that much of the decline in revenue and earnings was due to timing, and a long-term view shows a better picture. For the first three quarters of the fiscal year, net income increased to $23.4 million from $16.9 million a year ago. I actually agree that a longer-term view is needed here and investors willing to buy on the dip today will be getting a deal on the stock.
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.