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 supply chain software specialist JDA Software (Nasdaq: JDAS ) fell as much as 12% after reporting weak second-quarter results.
So what: Both revenue and earnings fell well short of targets. Sales climbed 3% to $162.4 million, while profit declined $0.03 from last year's Q2 to $0.45 a share. Analysts were expecting $169.8 million and $0.55, respectively, according to data compiled by Yahoo! Finance.
Now what: I'm more troubled by CEO Hamish Brewer's comments from the press release. He said that while the Q2 performance "did not meet our expectation," the company's outlook for the second half of the year "remains strong." Why? I have no idea, because Brewer never gave an explanation. There are better software infrastructure stocks, Fool, including IBM (NYSE: IBM ) .
Do you agree? Disagree? Let us know what you think using the comments box below.
Interested in more info on JDA Software?Add it to your watchlist.