Image source: Getty Images.
Shares of industrial supplier Rexnord Corp. (NYSE: RXN) fell as much as 18.3% in trading Thursday after reporting fiscal second-quarter 2017 results. At 1 p.m. EDT, shares were still down 13.2% on the day.
Net sales increased 1% from a year ago to $491 million, although core sales declined 2%. Net income rose 9% to $24.6 million, or $0.24 per share. Adjusted earnings per share of $0.38 was also in line with analyst estimates, although the bar for revenue was set higher at $496.9 million.
What really disappointed investors was full-year earnings guidance of $1.32 to $1.38 per share. Analysts were expecting $1.43 per share, and that's a big reason the stock is down today.
Growth may not be what investors were looking for recently, but sometimes it's important to take a step back and look at the business, rather than just at what Wall Street analysts had as their estimates. With the economy growing slowly, it's not surprising that revenue isn't growing significantly, but Rexnord is still posting a nice profit. And with shares now trading at just 13 times the bottom end of earnings estimates, I think there's a lot of value for investors.
A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.
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.