Why Kornit Digital Ltd. Stock Just Crashed 20%

Bad news (for investors) out of Israel today: Kornit Digital (NASDAQ: KRNT), a maker of printers for printing designs on t-shirts and other apparel and an Amazon partner, just announced preliminary financial results for its fiscal third quarter -- and the numbers were disappointing. Sales for the quarter are likely to range between $27 million and $28.5 million, versus previous guidance for sales of $34 million to $38 million.

Kornit shares are plunging as a result -- down 20.1% as of 11:30 a.m. EDT.

The 23% gap between what investors were expecting and what Kornit says it's likely to get this quarter certainly seems like reason enough for a sell-off. But what caused the shortfall?

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Source: Fool.com