These 2 Plunging Stocks Could Have Further to Fall

The stock market proved its resilience again on Monday, with most major market benchmarks recovering from losses earlier in the session. The Nasdaq Composite (^IXIC -0.52%) wasn't able to claw its way back into positive territory, but the Dow Jones Industrial Average (^DJI 0.06%) and S&P 500 (^GSPC -0.22%) managed to overcome downward pressure and finish with modest gains.

Data source: Yahoo! Finance.

Earnings continue to play a key role in determining moves in individual stocks, and a pair of poor performances after the closing bell weighed on market sentiment. Shares of First Republic Bank (FRCB) and Tenable Holdings (TENB -0.65%) were both down sharply in after-hours trading. Below, you'll learn more about what the two companies said and why their respective stock prices could have further to fall.

First Republic can't live up to investor hopes

Shares of First Republic Bank plunged 21% after the closing bell on Monday. The drop came after shares of the regional bank stock had risen 12% in the regular trading session, with the whipsaw indicating that investors weren't happy with what First Republic said in its first-quarter financial report released late Monday afternoon.

First Republic wasn't able to inspire confidence with its financial results. Revenue fell 13% to $1.2 billion, with net-interest income dropping 19% despite the rise in interest rates. Net income dropped an even steeper 33% to $269 million, and earnings of $1.23 per share were also down sharply year over year.

There were some bright spots in the business. First Republic's wealth-management assets rose 6% to nearly $290 billion, and revenue inched higher from year-ago levels. Moreover, book value was up more than 10%, approaching the $77 per-share mark.

However, what really made investors nervous was the fact that deposits plunged more than 40% over the past three months to just $104.5 billion. That amount included the $30 billion in special deposits that major U.S. banks made to help support First Republic during the worst of the banking crisis thus far. As a result, First Republic has had to borrow more than $100 billion extra compared to year-ago levels, and that will inevitably boost its financing costs and make it more difficult for the regional bank to recover.

Accelerating growth for this tech stock looks un-Tenable

Elsewhere, shares of Tenable Holdings dropped 15% after hours. The cybersecurity software specialist reported first-quarter financial results that showed ongoing growth but at a pace slower than what most shareholders wanted to see.

Tenable's quarterly results were tepid. Revenue climbed 18% year over year to $189 million, with current billings posting a 13% gain. Adjusted net income nearly doubled to $13.1 million, translating into $0.11 per share in adjusted earnings.

Tenable added 379 new customers during the quarter, of which 24 are likely to spend $100,000 or more annually on the cloud-security platform. Moreover, Tenable continued to flesh out its software offerings, adding functionality to help protect operational technology, introducing cyber insurance report capabilities, and releasing new features to help with compliance across various types of cloud infrastructures.

However, full-year revenue guidance for just $775 million to $785 million would represent annual sales growth of 15% or less. Despite calls for fairly strong adjusted earnings of $0.57 to $0.61 per share, investors seem concerned that sluggish trends in IT spending could hurt Tenable's future performance in 2023 and beyond.