Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Actuate Corporation Shares Plunged

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 Actuate Corporation (NASDAQ: BIRT  ) fell nearly 19% Wednesday after the personalized analytics company released disappointing fourth-quarter earnings.

So what: Quarterly sales came in at $32.4 million, which translated to adjusted earnings of $0.09 per share. By contrast, analysts were modeling earnings of $0.10 per share on revenue of $35.19 million.

Going forward, management expects 2014 revenue to fall to $122 million -- a result led by 10% growth in its BIRT iHub business to $82 million, but offset by continued declines in its legacy business, which should achieve combined license and maintenance revenue of $40 million. Analysts, on average, were looking for total 2014 revenue of $146.25 million.

Separately, Actuate detailed the acquisition of German software company legodo, whose products should "significantly extend" Actuate's Customer Communication Management offerings. Specific financial terms for the deal weren't released.

Now what: Actuate may look relatively cheap trading around 14 times next year's estimated earnings, but keep in mind those estimates are likely to fall as analysts have time to fully digest today's miss. Additionally, given the added risk for Actuate in successfully implementing the acquisition, I prefer to keep Actuate on my watch list for now.

Consider the 6 amazing growth stocks in this free report
Remember, there are plenty of other great growth stocks in which you can put your money to work. So where should you look?

Consider the investing expertise of Motley Fool co-founder David Gardner, who has proved skeptics wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2825932, ~/Articles/ArticleHandler.aspx, 8/28/2015 6:20:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated Moments ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
BIRT $0.00 Down +0.00 +0.00%
Actuate Corporatio… CAPS Rating: *****