Why Guidance Software Shares Plunged

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 Guidance Software have plunged today by as much as 25%, after the company reported earnings.

So what: Revenue in the fourth quarter added up to $36.2 million, with non-GAAP earnings per share of $0.17. The bottom line result was slightly better than expected, which partially offset the disappointment from the top line miss, as investors were expecting $37.2 million in sales.

Now what: Guidance's guidance left a little to be desired, with full year revenue expected to be in the range of $144 million to $148 million, the midpoint of which is short of the $147.4 million consensus estimate. Non-GAAP earnings per share should be $0.25 to $0.30, which is well below the $0.50 per share in adjusted profit that analysts thought was in order.

Interested in more info on Guidance Software? Add it to your watchlist by clicking here.

If you're interested in high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

The article Why Guidance Software Shares Plunged 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.