Netspend Holdings 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: Shares of pre-paid debit card company Netspend Holdings (NAS: NTSP) were declined today and fell 36% after the company released earnings.
So what: In the second quarter revenue was up 10% to $74.4 million and earnings per share rose a penny to $0.08, but investors were expecting so much more. Analysts had expected $78.6 million in revenue and earnings per share of $0.11, so they were less than excited with the company's growth.
Now what: To put salt in the wound, Barrington Research downgraded the company to market perform from outperform. The market is obviously freaked out today, and it was terrible timing to come out with a disappointing report. There is probably a bounce coming for shares but, after such a wild decline, guessing on when it will happen isn't a bet I'd be willing to take.
Interested in more info on Netspend Holdings? Add it to your watchlist.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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