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 paper and hygiene product company Domtar Corp (USA) (NYSE:UFS) fell 11% today after reporting preliminary quarterly results.
So what: Management said this morning that sales in the quarter were $1.39 billion and net income rose slightly to $40 million, or $0.61 per share. The problem is that Wall Street had set estimates at $1.48 billion and earnings of $0.87 per share, so the company is performing well below what analysts and investors were expecting.
Now what: Maintenance in pulp mills and higher raw material costs for personal care products dragged on results and led to the lower-than-expected profits. New products are also still coming down the pipeline but have yet to impact results for Domtar. While the results may not have impressed investors, there's still growth on the horizon, and with shares trading at just 14.5 times trailing earnings, I think this dip offers a nice buying opportunity for investors eyeing the stock. (NASDAQ: AAPL)