So earnings that are 3% below expectations caused a 12% share price drop. This is why I hate Wall Street.
Citrix issued a profit warning last night when rolling out preliminary financial data for calendar Q2, sending its share price crashing by 12 per cent. The mobility, desktop and virtualisation vendor said earnings per share (EPS) were estimated to be in the $0.39 to $0.40 cent range, compared to its previous guidance of $0.41 …
Value of share options
I'm pretty sure senior management will be more disappointed than Wall Stree as they see the value of their share options decline.
They still made a lot of money!
These infernal analysts are the cause of many problems in the corporate worls. Gartner is no better either.
A very successful company has reported earnings under what analysts predicted. Result, a ridicolous dumping of shares.
No one ever questions why these parasitic pen-pushers go their forcases wrong in the furst place. Viable companies are destroyed by reports like this. Then of course the same analysts and financial institutions pick of the remains, buy all the stuff that was good at a bargin price & then selling it on at a vast profit. Blackberry is an example, they may have some difficulties but they are being hounded by "the markets" i.e these wretched analysts and the obsession with short term profit.
Re: They still made a lot of money!
> "A very successful company has reported earnings under what analysts predicted. Result, a ridicolous dumping of shares." [SIC]
But that's not what happened. This was Citrix not meeting their *own* guidance, not what some outside analyst was predicting. They originally said "we're predicting earnings between $730 to 740 million" but have now come back and said "sorry it's actually going to be between $710 to 712 million".
Even worse - that's revenue not earnings. "The new revenue forecast range $710 million to $712 million" their profit (money they made) was only about $65M.
Re: Even worse
Ha - Apple made the same profit as Citrix's entire quarter in less than a day!