Why Cinedigm Stock Crashed on Tuesday
Cinedigm (NASDAQ: CIDM) reported second-quarter results on Tuesday morning. Investors took one look at the mixed report and started running for the exits. The content producer and media-streaming services operator traded 26.9% lower by 2:35 p.m. EST, essentially erasing the gains of the last three months.
Cinedigm's second-quarter sales rose 41% year over year to $10.1 million. The bottom line showed a breakeven result, up from a net loss of $0.23 per share in the year-ago period. Wall Street's consensus estimates had called for a net loss of roughly $0.02 per share on revenue near $10.9 million. Cinedigm traders shrugged off the earnings surprise to focus on the revenue miss instead.
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Source Fool.com
