Why ServiceSource Shares Got Crushed
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 ServiceSource got crushed today, down by as much as 15%, after the company reported fourth-quarter earnings.
So what: Revenue in the fourth quarter was $67.3 million, resulting in non-GAAP earnings per share of $0.05. Both figures came in better than expected, as the consensus forecasts were looking for $$62.9 million in sales and adjusted earnings per share of just $0.01.
Now what: CEO Mike Smerklo said that recurring revenue sources continue to grow as a percentage of total sales. The company also announced a new CFO, Ashley Fieglein Johnson, effective once it files its form 10-K with the SEC. The outgoing CFO David Oppenheimer had previously announced that he was leaving the company in December.
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The article Why ServiceSource Shares Got Crushed originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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