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What: Shares of software maker Informatica
So what: Informatica shares have been crushed over the past few months on concerns over its susceptibility to Europe's woes, and today's alarming third-quarter warning naturally reinforces those fears. In fact, software stocks with similar exposure are also falling on the bleak outlook, with the likes of Qlik Technologies
Now what: Management now sees third-quarter adjusted EPS of $0.25-$0.27 on revenue of $189 million to $191 million, well below the average analyst estimate of $0.34 and $200.8 million, respectively. "The disappointing European results reflect continued operational challenges that we are taking aggressive steps to address," said Chairman and CEO Sohaib Abbasi. "Under our new worldwide sales leader, we remain focused on implementing the changes necessary to pursue our market opportunity." With the stock plummeting to a new 52-week low today, and trading at a forward P/E of 15, betting on that turnaround talk might not be a bad idea.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Informatica, Qlik, and Teradata. Try any of our Foolish newsletter services free for 30 days.