Please ensure Javascript is enabled for purposes of website accessibility

Why Carbonite Stock Plunged Today

By Evan Niu, CFA – Nov 2, 2018 at 12:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The data backup and recovery company lowered its full-year forecast.

What happened

Shares of Carbonite (CARB) have plunged today, down by 24% as of 1:15 p.m. EDT, after the company reported third-quarter earnings. The data backup and recovery company posted better-than-expected profits, but guidance came in below expectations.

So what

Non-GAAP revenue in the third quarter grew 25% to $79.1 million, which led to non-GAAP earnings per share of $0.48. The Street had been expecting adjusted sales of $80.5 million and adjusted earnings per share of $0.41. Business subscription bookings rose 59% to $43.9 million, and adjusted EBITDA was $23 million. Non-GAAP gross margin also expanded to 78.4%, up from 76.3% a year ago.

Person uploading data to the cloud via a smartphone, with a laptop in the background

Image source: Getty Images.

Now what

"We continue to deliver strong results across the board while successfully executing against our strategic plan," CEO Mohamad Ali said in a statement. "With the newly launched Carbonite Data Protection Console and our robust server backup solution that now includes purpose-built protection for virtual machines, our solutions address all of the market's most pressing data protection needs. In addition to our strengthening product portfolio, we are making investments in our partner network to effectively enable our partners to sell the full suite of Carbonite data protection solutions."

Carbonite revised its full-year guidance, and now expects 2018 non-GAAP revenue to be $302.5 million to $305.5 million, bringing the high end of its outlook down from $312.5 million. The low end of that forecast was unchanged. Adjusted revenue in the fourth quarter should be $78.6 million to $81.6 million, with non-GAAP earnings per share of $0.40 to $0.44. The Street is currently modeling for $83 million in revenue and $0.42 per share in adjusted profit.

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Carbonite, Inc. Stock Quote
Carbonite, Inc.
CARB

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.