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 industrial engineering company Thermon Group Holdings Inc (NYSE:THR) popped as much as 12% Tuesday after the company reported better than expected earnings.
So what: Fiscal third-quarter revenue jumped 23% to $87.6 million and net income was up 24% to $15.6 million, or $0.48 per share. Analysts were only expecting revenue of $78 million and earnings of $0.35 per share, so the company easily topped the bar Wall Street had set.
Now what: Management seemed to be very bullish Tuesday as well, predicting 9%-10% revenue growth for fiscal year 2015 and saying orders placed grew 17% to $81.9 million in the quarter. That bodes well for future operations, and with shares trading at just 15.6 times forward earnings -- before being adjusted for Tuesday's results -- I think the stock presents a strong value. Shares calmed down to just a 6% gain in midday trading, and I think there's plenty of room to move higher given Thermon Group's strong operations and outlook.
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.
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