VanceInfo Technologies 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 IT consulting company VanceInfo Technologies (NYS: VIT) have plunged today by as much as 11% after the company reported fourth-quarter earnings yesterday.
So what: Revenue came in on top of expectations at $87.2 million, while the bottom-line profit was on target at $0.20 per share. Guidance was the real culprit, and while next quarter's revenue forecast of at least $80 million was fine and dandy, the bottom-line projection of $0.14 to $0.15 per share fell short.
Now what: CEO Chris Chen added, "While 2011 has been a challenging year for our industry, we hope 2012 is a year of stabilization with continued revenue growth and gradual margin recovery." R&D outsourcing services continues to be the bulk of revenue, but the company is also investing heavily in financial services. VanceInfo also recently acquired Beijing Sunwin, which provides consulting services to the Chinese airline industry.
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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. Try any of our Foolish newsletter servicesfree for 30 days. 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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