Shares of American Software experienced a significant decline after the company's annual revenue guidance and latest quarterly earnings results failed to meet analyst expectations.
Stock Value Decreases
The stock opened with an 11.5% decrease at $9.72 during premarket trading. This drop adds to the overall decline of 25% in shares since the beginning of the year.
Lower Revenue Guidance
American Software provided a revenue forecast of $100 million to $104 million for the fiscal year. However, analysts surveyed by FactSet had anticipated a higher figure of $111.7 million.
Quarterly Earnings Report
In its fiscal second quarter, the software company reported a profit of $2.4 million, equivalent to 7 cents per share. This is a slight increase compared to the $2.1 million, or 6 cents per share, earned in the same quarter last year.
Adjusted Earnings Fall Short
When excluding one-time items, adjusted earnings amounted to 8 cents per share. Analysts surveyed by FactSet had predicted earnings of 9 cents per share.
Decreased Revenues
The company's revenue for the quarter showed a 6% decrease, totaling $25.7 million. This missed analyst forecasts of $27.7 million, according to FactSet data.
