Why Blount International Inc's Shares Crashed 19% Today

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 forestry parts maker Blount International Inc dropped as much as 19% today after reporting fourth-quarter earnings results.

So what: Sales increased 7% to $232.2 million and net loss improved from a $21.5 million loss a year ago to a $2.4 million loss, or $0.05 per share. Revenue was well ahead of the $212.5 million analysts expected but earnings fell below the $0.20 profit they were expected to make.

Also falling short of expectations were sales in the company's 2015 outlook, which are expected to fall 2% to $925 million. Adjusted EBITDA and free cash flow are also expected to fall slightly to $137.5 million and $45 million respectively.

Now what: A strong dollar is expected to impact sales and profits in 2015, a theme we're hearing across corporate America. Still, it isn't encouraging that growth is expected to stall next year, especially with shares trading at 18 times 2014's earnings. I don't see enough value to jump in today and would like a return to growth or better value before getting bullish on Blount's shares.

The article Why Blount International Inc's Shares Crashed 19% Today originally appeared on Fool.com.

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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