RealPage 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: Blame Mr. Market. Investors moved out of rental software provider RealPage (NAS: RP) today, causing a 13% drop in intraday trading after the company issued modestly better-than-expected earnings and guidance.

So what: Non-GAAP EPS of $0.09 grew 125% year over year and beat the $0.08 consensus estimate. GAAP EPS broke even at $0.00, an improvement from -$0.03 in the year-earlier quarter. Revenue grew 38% year over year.

Now what: Guidance calls for non-GAAP EPS of $0.09 to $0.10 in the current quarter and $0.35 to $0.37 in 2011, excluding litigation costs related to Yardi Systems. The consensus estimates called for $0.09 and $0.35, respectively. With investors worried about the economic outlook and looking to reduce risk, the stock's nosebleed 80 times P/E ratio may be behind the selling.

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

At the time thisarticle was published Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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