What happened
Shares of Cognyte Software (CGNT 4.37%) were trading down by 25.5% as of 11:54 a.m. ET Tuesday after the company reported fourth-quarter numbers that came in below analysts' consensus estimates.
So what
The investigative analytics software company's non-GAAP earnings of $0.16 per share were down significantly from the $0.36 per share it earned in the year-ago quarter. Wall Street analysts had been expecting earnings of $0.22 per share.
Image source: Getty Images.
The company also came up short in terms of revenue. Cognyte's sales were $124.9 million in the quarter -- up less than 1% from the year-ago period. Analysts' consensus estimate had been for sales of $129.6 million.
In the press release, management asserted that sales had undershot the midpoint of its guidance range by several million dollars because of supply chain issues and lower conversions within its product pipeline than expected. "We are proactively addressing these issues, but our ability to forecast with any level of precision is currently limited," said CEO Elad Sharon.
Now what
With the company's earnings down significantly year over year, revenues below the midpoint of the quarter's guidance range, and management unready to issue new guidance, it's no surprise that Cognyte's stock plunged.
Including Tuesday morning's share price drop, Cognyte is down by 56% over the past six months. Investors who are considering buying this beaten-down tech stock may want to wait to see what financial results the next few quarters bring.
