Why Twilio Shares Dropped 12% Last Month
Shares of Twilio (NYSE: TWLO) fell 12.2% in October 2019, according to data from S&P Global Market Intelligence. The provider of business software platforms had a very bad day right after reporting strong third-quarter results, with a side order of weak next-quarter guidance. The stock fell as much as 13.8% in intraday trading that day.
Twilio's earnings fell from $0.07 to $0.03 per share, still exceeding the Street's consensus estimate at $0.01 per share. Revenue rose 75% to $295 million, also ahead of analysts' projections of $288 million.
Management guided fourth-quarter earnings to approximately $0.02 per share alongside a sales target of roughly $313 million. Here, the Street consensus had been pointing to earnings near $0.07 per share of revenue in the vicinity of $322 million. That market's retribution for these forward-looking misses was swift and brutal.
Source Fool.com
