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A Growth Stock Investing Lesson From Noodles & Company

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Have any of you been checking out the price action in Noodles & Company since it posted its quarterly earnings figure a few days ago?

After reporting that each share of the stock earned $0.12 in the second quarter of 2014, and posted revenue figures of $99 million. Sales fell 0.6%, and the general operating margin came in at 20.4%. All in all, the business is growing at somewhere between 11% and 12%, which is a perfectly nice rate of growth for a company worth somewhere between $750 million and $1 billion.

Why, then, did the price of the stock fall so significantly? The most recent after-hours trade for the stock came in at exactly $21.00, below the $25.58 figure the stock was trading at before the earnings announcement (for a current 17.9% decline since the earnings announcement).

The company earned $0.24 per share last year. Analysts are expecting Noodles … Read the rest of this article!


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