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 Fusion-io (NYSE: FIO) have tanked today by as much as 10% after the company reported fiscal first quarter earnings, and its conservative guidance spooked investors.
So what: The company posted record revenue of $118.1 million, representing growth of 59% from a year ago. Net income came in at $3.9 million, or $0.04 per share. That was down from a year ago, largely due to increased stock-based compensation expenses.
Now what: Fusion-io sees second quarter sales to be flat sequentially, with full-year revenue expected to grow between 45% and 50%. That soft guidance has left investors wanting more, while analysts are split over whether there's cause for concern. Benchmark called the outlook "comically" conservative and said the drop was a buying opportunity. Pacific Crest agrees that investors should pick up shares on the weakness. Goldman Sachs thinks the pessimism is warranted though, saying macro conditions could weigh on future results.
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