Higher One Holdings Shares Got Crushed: What You Need to Know
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So what: Revenue was just $41.7 million in the quarter, falling well short of the $51.4 million analysts expected. Adjusted earnings per share were in line with expectations at $0.21, but GAAP earnings per share fell a penny to $0.13 in the quarter.
Now what: To top off the weak earnings report, Raymond James downgraded the stock this morning. Despite the tough quarter revenue growth was strong in 2011, and the company met its guidance. I wouldn't buy until shares settle down, but there may be value creeping into shares given the strong growth rate.
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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.The Motley Fool owns shares of Higher One. 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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