Why New Relic Stock Fell 19% in February
Shares of New Relic (NYSE: NEWR) fell 18.7% in February, according to data provided by S&P Global Market Intelligence. The cloud-based software and systems monitoring expert posted solid third-quarter results early last month, but guidance for the next quarter came in far below analyst expectations. The stock closed 16% lower the next day.
New Relic reported an adjusted net loss of $0.14 per share on revenue of $166 million in the third quarter. Both results were in line with Wall Street's consensus targets. Management expects sales to hold steady at roughly $166 million in the fourth quarter while bottom-line losses should increase to approximately $0.47 per share. Here, the analyst consensus at the time called for a fourth-quarter loss near $0.12 per share on revenue in the neighborhood of $171 million.
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Source Fool.com
