What happened

Mortgage software and analytics specialist Black Knight (NYSE:BKI) outpaced a booming market last year as the stock jumped 43% compared to a 29% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.

Shares never trailed the S&P 500 and marked an especially strong rally in the final weeks of 2019.

A man sitting in front of a computer and speaking into a headset

Image source: Getty Images.

So what

Investors cheered the company's continued market-share gains in the growing mortgage industry, which allowed sales to rise 6% over the nine months ended on Sept. 30. Adjusted earnings are expanding at the same robust pace, and those gains overcame concerns about potential liability stemming from a lawsuit filed by a former customer.

Now what

The loss of that customer is one of several unusual headwinds that CEO Anthony Jabbour and his team see for the months ahead that will pressure sales by about 5%. As a result, 2019 revenue should land at the low end of management's prior outlook. Yet the tech stock is still primed for solid growth into 2020. "The core fundamentals of our business remain strong," Jabbour said in early November.

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