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Why Shares of Monotype Imaging Slumped Today

By Timothy Green – Apr 26, 2019 at 1:14PM

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The company's first-quarter results missed the mark.

What happened

Shares of Monotype Imaging (TYPE) dropped on Friday after the provider of text imaging solutions reported its first-quarter results. Monotype missed analyst estimates across the board, reporting a steep decline in revenue. The stock was down about 14.9% at 12:50 p.m. EDT.

So what

Monotype reported first-quarter revenue of $51.4 million, down 9.4% year over year and about $6.5 million below the average analyst estimate. Creative professional revenue fell 6% to $32.8 million, while OEM revenue tumbled 14% to $18.6 million.

A declining chart.

Image source: Getty Images.

Non-GAAP earnings per share came in at $0.19, down from $0.22 in the prior-year period and $0.03 lower than analysts were expecting. Adjusted earnings before interest, taxes, depreciation, and amortization was $11.0 million, flat compared to the first quarter of 2018.

"While we fell short of our expectations for the quarter, we are confident that our sales pipeline and go-to-market strategy will enable us to meet our full-year guidance," said Monotype CEO Scott Landers in the earnings release.

Now what

Monotype expects to produce second-quarter revenue between $54.5 million and $59.5 million, along with non-GAAP earnings per share between $0.23 and $0.31. For the full year, the company sees revenue between $247.0 million and $257.0 million, and non-GAAP earnings per share between $1.29 and $1.43.

While Monotype still expects to hit its full-year guidance, a rough first quarter isn't what investors were looking for.

Timothy Green 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.

Stocks Mentioned

Monotype Imaging Holdings Stock Quote
Monotype Imaging Holdings

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