Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
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: VanceInfo Technologies (NYSE: VIT ) dropped 32% in intraday trading today after issuing disappointing earnings and guidance, and the CEO stated, "the near-term outlook for our industry lacks clarity."
So what: Non-GAAP EPS of $0.21 rose a modest 5% year over year and fell short of the $0.23 consensus estimate. GAAP EPS of $0.16 fell from $0.17 in the year-earlier quarter. Revenue of $68 million grew 32% year over year.
Now what: Wage inflation, particularly in China, is pressuring earnings while macroeconomic weakness is causing revenue growth to slow. For the third quarter, management said it expects revenue of $69 million to $72 million, growth of 24% to 29%, and non-GAAP diluted EPS of $0.19 to $0.21, below the consensus estimate of $0.25. For 2011, management expects revenue of "at least" $275 million and non-GAAP EPS of $0.84 to $0.90, below the consensus estimate of $0.97.
Interested in more info on VIT? Add it to your watchlist by clicking here.