Why PubMatic Stock Plummeted Today
PubMatic (NASDAQ: PUBM) stock got hit with big sell-offs in Friday's trading. The advertising-technologies company's share price closed out the daily session down 23.9%. The S 500 index closed out the day up 1.5%, and the Nasdaq Composite ended the session up 1.6%.
PubMatic reported its fourth-quarter results after the market closed, and posted earnings that beat the market's expectations. On the other hand, sales missed Wall Street's guidance -- and the company's forward guidance raised a big red flag.
PubMatic posted non-GAAP (adjusted) earnings per share of $0.41 on sales of $85.5 million in Q4. For comparison, the average analyst estimate had called for the business to post adjusted earnings per share of $0.37 on sales of $88.2 million. Revenue for the period was up just 1.1% year over year, and earnings per share were down 8.9% compared to the prior-year period. PubMatic's margins weakened along key lines, and the company's forward guidance didn't offer much for investors to be excited about.
Source Fool.com
