What happened
Shares of Cognyte Software (CGNT -1.01%), an analytics software company, plummeted this morning after the company reported first-quarter sales and earnings that fell far below analysts' consensus estimates.
The tech stock was down by 26.3% as of 10:48 a.m. ET.
So what
Cognyte reported a non-GAAP (adjusted) loss of $0.79 per share in the first quarter -- compared to earnings of $0.20 in the year-ago quarter -- which was far worse than the $0.10 earnings per share Wall Street was expecting.
Image source: Getty Images.
The company's revenue was a huge disappointment as well. Total revenue for the quarter was $86.4 million, which was a 25% decrease from the year-ago quarter and also fell below the average analyst estimate of $112.6 million.
Cognyte's CEO Elad Sharon said in a press release: "We are disappointed with our first quarter results, which were impacted by slow pipeline conversion and supply chain. We have taken actions to improve our execution and cost structure in the current environment."
Sharon didn't offer any guidance for the upcoming quarter or full year and only added that he continues "to believe in the long-term opportunity" of the company.
Now what
With Cognyte missing analysts' average estimates for both the top and bottom lines and falling far short of its results from the year-ago quarter, it's no surprise investors were pessimistic about the company today.
And with the company's share price now down about 70% year to date, long-term investors likely have a long road ahead as investors continue to flee risky technology stocks that aren't earning a profit right now.
