Why Clarivate Stock Dove Today
Clarivate (NYSE: CLVT) investors lost ground to the market on Tuesday as shares fell 12% by 11:15 a.m. EDT, compared to a 0.4% drop in the S&P 500. That decline put the analytics company near its lows for the year, down over 45% since early January. It was powered by news of slowing sales growth amid declining profitability.
Clarivate said in an early-morning press release that sales rose a healthy 60% in the Q2 period, after accounting for currency exchange rate shifts. Organic revenue rose 4.8%, or just slightly faster than the previous quarter's 4.4% rate.
Yet there were some signs of increasing stress on the analytics business. Adjusted profit margin fell by 2.4 percentage points to 39.9% of sales. Organic subscription revenue rose just 3.8% too, and that growth came mostly from higher prices.
Source Fool.com
