the sell off was quite severe. the reaction from the opening was...

the sell off was quite severe. the reaction from the opening was poor at best. the p/e makes the price look expensive still. with the p/e at 20 before the earnings announcement, i expect a slew of downgrades. i wouldn't be surprised to see target price recommendations in the low twenties. frankly, with earnings being slashed around 15% say EPS around 1.35 and a p/e of 17 (market sector p/e) then i see a price around 1.35 x 17 of 23.
i would not touch this above 24 after this earnings guideline.
finally, the management did the right thing and let the market know that the earnings target would not be met. its easy to tell good news but the pressure management comes under when bad news hits is very trying. shows the management is trying to do the right thing. unfortunagely, the news is shockingly bad for short term stock holders. good luck