What happened

Shares of smart-home and business solutions company Control4 (CTRL) were slammed Friday, falling as much as 23.4%. As of 11:07 a.m. EDT, they were down about 22%

The stock's slide comes after the company's third-quarter earnings release, which featured better-than-expected revenue and earnings per share but weaker-than-anticipated revenue guidance for its fourth quarter.

A chalkboard sketch of a stock price falling

Image source: Getty Images.

So what

Control4 posted non-GAAP earnings per share of $0.38. This was up from $0.35 in the year-ago quarter and slightly ahead of a consensus analyst forecast for $0.36. Revenue rose 11% year over year to $71.59 million, barely beating a consensus forecast for $71.55 million.

"We are pleased with our performance in the past quarters and are continuing our focus to drive growth and execute on our strategies to be the preferred choice for home automation," CEO Martin Plaehn said during the third-quarter earnings call. In addition, CFO Mark Novakovich pointed to the company's expanding net margin and positive cash flow generation, saying these trends "put us in a good position to continue to maintain our leadership in the professionally installed whole-home automation market."

Now what

But when it came to Control4's outlook, the company disappointed investors. For its fourth quarter, management guided for revenue between $72 million and $74 million, below the current consensus analyst forecast for revenue of $74.7 million during the period. 

Furthermore, Control4 even lowered its outlook for full-year revenue. Management guided for full-year 2018 revenue to be between $272 million and $274 million, down from a previous forecast for between $273 million and $276 million.