Please ensure Javascript is enabled for purposes of website accessibility

Why Comscore Stock Was Slammed on Tuesday

By Daniel Sparks – Aug 10, 2021 at 2:19PM

Key Points

  • Some contracts were signed later than expected.
  • Comscore management anticipates revenue to rise in the second half of the year.

Motley Fool Issues Rare “All In” Buy Alert

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 company's reported second-quarter top and bottom lines missed analyst estimates. But management remains optimistic.

What happened

Shares of Comscore (SCOR -0.72%) -- an advertising and consumer behavior information and analytics company -- fell sharply Tuesday. The stock declined as much as 25.8% today, and as of 12:35 p.m. EDT, shares were down about 22%.

The stock's decline followed the company's second-quarter earnings release, which featured lower-than-expected revenue and a wider-than-anticipated loss per share. 

A chart showing a stock price falling.

Image source: Getty Images.

So what

Comscore announced second-quarter revenue of $87.7 million. This was down from $88.6 million in the year-ago quarter. Analysts, on average, were expecting revenue of $90.9 million. The company's net loss widened from $10.4 million in the year-ago period to $18.5 million. On a per-share basis, this loss comes out to $0.28.

The weaker-than-expected results are in part due to some contracts being executed later in the year than anticipated.

Now what

Despite the disappointing quarterly financial results, management remained confident about Comscore's future.

"This quarter we saw solid performance in many areas of our business, signing many new customers that we expect to increase revenue in the second half of the year," CEO Bill Livek said in the company's second-quarter earnings release. He added, "Some of these new contracts and partnerships didn't have a revenue impact in the second quarter but will start in the second half of the year."

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies 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

comScore Stock Quote
comScore
SCOR
$1.38 (-0.72%) $0.01

*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
351%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/29/2022.

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.