Why Agilysys Stock Is Falling Hard Today
Shares of Agilysys (NASDAQ: AGYS), a hospitality software and services company, were plummeting this morning after the company reported its first-quarter results. Agilysys beat analysts' consensus top- and bottom-line estimates, but investors may have been concerned that the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) was flat and free cash flow sank year over year.
The tech stock was down by 10.7% as of 11:55 a.m. ET.
Agilysys reported sales of $47.5 million in the quarter -- an increase of nearly 23% year over year -- which beat Wall Street's consensus estimate of $45.6 million. That increase was due to a jump in recurring revenue, which reached $27.7 million in the quarter.
Source Fool.com
