Why Qlik’s Shares Slipped

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 Qlik Technologies (Nasdaq: QLIK  ) were down by over 14% today, after underperforming in both revenue and earnings estimates for the third quarter, but the stock has since rebounded slightly to an 8% loss as of this writing.

So what: Analysts had expected $88.4 million in revenue, and $0.04 in earnings per share. Qlik's results were $86.1 million in revenue, and $0.02 in EPS. Fourth-quarter guidance also disappointed the Street, as did full-year earnings projections. Qlik expects $0.22 to $0.24 in EPS for the fourth quarter, and only a penny more in full-year EPS, while analysts were looking for $0.29 for the fourth quarter, and $0.32 for the full year.

Now what: This disappointing guidance anticipates minimal growth in Qlik's near future. The company sports a forward P/E of 40.7, priced to perfection for a stalling company. Investors have been fleeing the stock over the past year, and there seems to be nothing in this report indicating that they were wrong to do so.

Want more news and updates? Add Qlik to your Watchlist now.


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Comments from our Foolish Readers

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  • Report this Comment On October 26, 2012, at 5:52 PM, BillFromNY wrote:

    My question: If investors have been fleeing QLIK over the past year, and according to this report they were justified in doing so, why did not Rule Breakers inform their subscribers BEFORE the bad news came out, what with QLIK being on the Best Buy list within the past year.

  • Report this Comment On October 26, 2012, at 6:55 PM, TMFBiggles wrote:

    @ BillFromNY -

    As I'm not affiliated with the Rule Breakers service, I wouldn't know. Our opinions may differ, and they're likely to have a more detailed analysis than this quick overview could provide.

    - Alex

  • Report this Comment On October 27, 2012, at 8:37 AM, TMFMileHigh wrote:

    @BillFromNY --

    >>why did not Rule Breakers inform their subscribers BEFORE the bad news came out, what with QLIK being on the Best Buy list within the past year.

    QLIK hasn't been on our Best Buys Now list over the past year. I'm posting some more thoughts on the quarter to the boards.

    Thanks for writing and Foolish best,

    Tim

    --

    Tim Beyers

    TMFMileHigh, Motley Fool Rule Breakers Analyst, Supernova Odyssey I Portfolio Contributor

    Web: http://timbeyers.me

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