comScore Shares Plunged: What You Need to Know
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:comScore (NAS: SCOR) scored a stunning 40% drop in intraday trading today after reporting better-than-expected earnings, lowering guidance, and announcing the acquisition of AdExpose for $22 million.
So what: Non-GAAP EPS of $0.16 fell 20% year over year but was double the consensus estimate of $0.08. GAAP EPS of -$0.26 reversed a profit of $0.03 per share in the year-ago quarter. Revenue of $58.1 million grew 38% year over year. Free cash flow declined 62% to $1.9 million.
Now what: Third-quarter guidance calls for revenue of $58.2 million to $58.8 million, below the $61.1 million consensus forecast. Management lowered its 2011 forecast to revenue of $231.1 million to $234.7 million, down from a previous range of $238.2 million to $239.7 million. It also lowered non-GAAP EBITDA to $43.6 million to $45.4 million, down from a previous range of $50.5 million to $53.1 million. comScore blamed the weak guidance on the cost of the acquisition, reduced activity by TV copy testing customers, "exogenous industry circumstances that have stretched the sales cycles for several larger customer transactions," and "increased concerns as to macroeconomic weakness."
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