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 cybersecurity specialist Websense (NAS: WBSN) are down about 11% today after missing the Street's EPS estimates. Forward guidance also appears underwhelming, as top-line projections for the full year represent a slight decline from trailing-12-month revenue (not counting the most recent quarter).
So what: Websense's third quarter revenue of $90.4 million was down from $92.1 million in the year-ago quarter, but slightly ahead of the analyst consensus of $89.1 million. However, non-GAAP EPS results of $0.43, which came in ahead of the $0.39 in consensus expectations, weren't what Wall Street focused on today. Full-year projections are essentially flat, with $359.8 million to $361.8 million coming in below the earlier trailing-12-month result of $364.2 million.
Now what: This is a pretty mediocre report, with barely any positive momentum offered for the upcoming quarter. CEO Gene Hodges sounded an optimistic note by pointing out double-digit sales growth to new customers and a rebound in international sales, but that apparent momentum isn't reflected in the company's forward guidance. Websense has already lost about a third of its value this year, and until investors see real evidence of growth, there's little reason to expect that trend to reverse.
Want more news and updates? Add Websense to your Watchlist now.
The article Why Websense Shares Got Knocked Senseless originally appeared on Fool.com.
Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more news and insights. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.