Why TIBCO Software Shares Sank
Mar 22nd 2013 5:43PM
Updated Mar 22nd 2013 5:46PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of business software specialist TIBCO Software plunged 16% today after its quarterly results and guidance missed Wall Street expectations.
So what: TIBCO's first-quarter adjusted EPS of $0.18 met estimates, but a miss on the top line -- revenue of $237.8 million versus Wall Street's view of $242.3 million -- coupled with downbeat guidance for the current quarter, reinforces concerns over slowing growth. Non-GAAP operating margins even declined 200 basis points over the year-ago period, suggesting that its competitive environment is only getting more intense.
Now what: Management now sees second-quarter EPS of $0.17-$0.19 on revenue of $242 million-$252 million, well below the consensus of $0.26 and $264.8 million. "Our competitive differentiation remains strong, and we are well positioned to benefit from the current trends driving enterprise IT spending, such as 'big data,' especially with our event-driven platform approach to integrating and analyzing data in real-time," Chairman and CEO Vivek Ranadive reassured investors. With the stock flirting with its 52-week lows, and trading at a forward P/E of 14, now might even be an opportune time to buy into that bull talk.
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The article Why TIBCO Software Shares Sank originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Tibco Software. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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