What happened
Shares of E2open Parent Holdings (ETWO 5.65%), a supply chain software platform company, were falling fast today after the company's fourth-quarter revenue missed analysts' average estimate.
The software stock was down a staggering 26% as of 11:21 a.m. ET.
So what
E2open reported non-GAAP (generally accepted accounting principles) adjusted earnings per share of $0.07 for the quarter, which was in line with Wall Street's expectations. But it was the company's revenue that disappointed investors. E2open's sales of $166.3 million were up 15% from the year-ago quarter but missed analysts' average estimate of $171.2 million.
E2open's CEO Michael Farlekas said in a press release that the company continued to gain large customer wins in the quarter and that in fiscal 2023 the company "achieved solid revenue growth and strong profitability, despite macro headwinds that impacted our top-line performance as we finished out the fiscal year."
But investors are far more critical of technology companies right now, as interest rates have risen and fears of a recession are looming. This has resulted in investors being less patient with a company when it reports top- or bottom-line results that fail to meet estimates.
Now what
E2open's management issued guidance for the full year, with the company expecting fiscal 2024 revenue to be in the range between $655 million to $670 million. That may have disappointed investors as well, considering that the estimate reflects just 1.6% year-over-year sales organic growth at the midpoint.
With investors taking a more critical view of company earnings these days, it's not all that surprising to see E2open's share price falling today.
