Why New Relic Stock Crashed Hard Today
Shares of New Relic (NYSE: NEWR) traded 27.6% lower at noon today, following a mixed third-quarter report. Management also provided disappointing earnings guidance for the fourth quarter, indicating that loftier financial goals will have to wait a while.
New Relic's third-quarter revenues rose 22% year over year, landing at $204 million. Adjusted net losses came in at $0.18 per diluted share, compared to a loss of $0.14 per share in the year-ago period. Your average analyst was expecting a net loss of roughly $0.15 per share on sales near $200.5 million.
So that's a mixed bag, but New Relic's management also issued concerning fourth-quarter guidance targets. The analyst consensus was pointing to a net loss of just $0.02 per share on sales in the neighborhood of $204 million for the next quarter. The midpoints of the new guidance ranges point to deeper losses of approximately $0.21 per share and revenues of $205 million.
Source Fool.com
