Wall Street Watch Wednesday: LivePerson Misses on Earnings

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LivePersonLivePerson (LPSN) may be holding for an operator.

The provider of online tech support through its cloud-based chat platform provided disappointing quarterly results on Tuesday night.

Revenue climbed 17% to $39.7 million, but that was well shy of the 20% top-line spurt that analysts were projecting. LivePerson's adjusted profit of $0.08 did match Wall Street expectations.

LivePerson provides its chat, voice, and content delivery support to thousands of companies. Clients include HP, Verizon Wireless, and Microsoft. Surely these companies can drum up in-house solutions, but LivePerson's expertise is the "intelligent engagement" behind the simple chat interfaces. In other words, when someone is browsing through QVC's website, LivePerson has done enough behavioral analytics to know just when to throw a pop-up box offering live assistance before the shopping cart gets abandoned.

It's a solid business for a solid company, but apparently it's just not growing fast enough and the current quarter won't get any easier. LivePerson's guidance calls for an adjusted profit of no more than $0.09 a share on $41.5 million to $42 million in revenue. Analysts were targeting a profit of $0.10 a share on $44.65 million in revenue.

If LivePerson's behavioral analytics are up to snuff, now would be the ideal time for it to remind investors not to bail on the still promising growth company.

Other Things Worth Watching

• There's no slowing down the webhosting market. Rackspace (RAX) delivered another quarter of hearty growth after Tuesday's market close. Revenue and net income climbed 27% and 36%, respectively. Rackspace is a popular provider of website hosting. It also allows customers to use its growing fleet of servers for the hosting cloud-based applications.

• News Corp. (NWSA) may be a polarizing name for TV viewers as the parent company of Fox Broadcasting, but the one thing that isn't debatable is that Rupert Murdoch's company did clock in ahead of expectations. The media giant's adjusted profit of $0.43 a share was well ahead of the $0.37 a share that Wall Street was forecasting. Revenue inched 2% higher to $8.1 billion. Now that the election is over, will Fox -- and the other politically influenced broadcasters -- hold up without all of the campaign ads?

Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. Motley Fool newsletter services have recommended buying shares of Rackspace Hosting and LivePerson.



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15 Comments

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lpi2007

did this surprise anyone, I posted for 6 months that the government was making this look good and after the election, boom back down to nothing, the stocks will keep going down now since you vote for this clown.

November 07 2012 at 10:25 PM Report abuse +1 rate up rate down Reply
BARBI

Trillions moveing to offshore investments.This transformational change jn america will lead to a lost generation and more,

November 07 2012 at 5:33 PM Report abuse +1 rate up rate down Reply
rjdver47

Companies are scrambling all across America this morning and the general scenario is as follows.... PAY ATTENTION!

ALL major employers are cutting ALL full-time employees back to under 20 hours per week and doubling staffs to cover their shifts with 100% "part-time" employees in order to escape massive Obama taxes tak
ing effect under ObamaCare.

They are dumping all private sector health insurance before January 1st, as the law does not require employers to provide health coverage to "part-time" employees.

My phone has been ringing off the hook this morning from members just notified by their employers and requests for immediate radio interviews as people scramble to figure out what to do next.

Small businesses are laying off, selling out or closing down by the thousands. Over $13 Trillion in private investment funds left the USA when Obama was elected in 2008, which is why no amount of government stimulus has stimulated anything. Those funds are never returning now.

The stock market is on the verge of free-fall as investors all over the world throw the towel in on America.

Americans committed suicide yesterday. The US Government is now the only entity willing to invest in American jobs and they can only do that until they run out of tax revenue just like the EU, only months ahead in that process.

PAY ATTENTION! I am telling you from first hand sources here. The wheels are coming off.

November 07 2012 at 4:34 PM Report abuse +1 rate up rate down Reply
rlbharman

Has nothing to do with earnings. Barack was reelected. Get ready for the ride.

November 07 2012 at 11:50 AM Report abuse rate up rate down Reply
MARSHALL

Trust me it is not only EU gloom. Obama never signed the Bush era tax cuts into law by Oct. 1st, so the day after it gets sworn in again, payroll taxes on our paychecks almost double to pay for Obama care. since he cant blame that one on bush he will target Congress, even tho all he had to do was sign it. because he knows we cant afford his socialist programs without taxes.

November 07 2012 at 11:41 AM Report abuse +3 rate up rate down Reply
rrfotobus

Besides the German market problems this morning that are influencing our market, keep this in mind. When Obama first became president Bush left him a market at 6500.. Obama's policies have more than doubled the market to 13500 at its highest in the last 4 years. Try to live in the real world if you think today's market drop is due to Obama being elected, because you are wrong.

November 07 2012 at 10:44 AM Report abuse rate up rate down Reply
1 reply to rrfotobus's comment
jj2301

Blame Bush? Really?!?

The only good thing about Obama's re-election is that borrowing will be cheap - for a short while.

November 07 2012 at 11:19 AM Report abuse +1 rate up rate down Reply
rrfotobus

The Stock Market today is not reacting to the election. It is reacting to German market problems. Come on, folks, try to keep up with world events and the interaction of our financial system with the rest of the world.

November 07 2012 at 10:40 AM Report abuse -2 rate up rate down Reply
pm0501

The market is reacting to that guy's re-election! Will probably lose 300 points Wednesday alone!

I see AOL is blocking comments early to day!

November 07 2012 at 10:39 AM Report abuse +2 rate up rate down Reply
pm0501

The market is reacting to that guy's re-election! Will probably lose 300 points Wednesday alone!

November 07 2012 at 10:37 AM Report abuse rate up rate down Reply
cboxmom

Look out Wall Street you might get taken over by the Federal Government if this keeps up!

November 07 2012 at 10:34 AM Report abuse +2 rate up rate down Reply
1 reply to cboxmom's comment
spint597

You're a moron...Try reading the financial reports about the German market problems. All I know is when democratic pres clinton was in office all you complainers made money on your 401k's. When bush was in office for 8 years everyone lost there shirts. Obama gets in office and the market has doubled. See the pattern here? You should be lucky that money hider romney didn't get in or you be back down to 6500 again on wall street.

November 07 2012 at 11:42 AM Report abuse rate up rate down Reply