Why Sapient Shares Tanked

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of management and technology services provider Sapient (NAS: SAPE) are tanking today by as much as 18% after the company reported first-quarter earnings.

So what: Service revenue came in at $260.6 million, with non-GAAP earnings per share of $0.11. CEO Alan Herrick admitted that the company started off its fiscal 2012 slower than he would have liked, but saw momentum across all areas of its business.


Now what: Herrick also added that its global markets segment has stabilized, which is encouraging. Going forward, second-quarter service revenue is predicted to be in the ballpark of $267 million to $277 million, with non-GAAP operating margin of 10% to 11.5%. That guidance falls short of the $283.7 million that analysts were expecting in the coming quarter.

Interested in more info on Sapient? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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