Why MicroStrategy Shares Plunged
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What: Shares of MicroStrategy have plunged today by as much as 13% after the company reported first-quarter earnings.
So what: Revenue in the first quarter added up to $130.2 million, a 6% decline from a year ago. That translated into a loss from continuing operations of $5.2 million, or $0.46 per share. Those figures looked poor relative to consensus estimates, which were calling for $152.4 million in sales and $0.35 per share in profit.
Now what: The company reported a one-time gain of $57.4 million from the sale of Angel.com, but investors are more concerned with continuing operations. Product license revenues were down 24%, while support and services revenues were mostly flat. MicroStrategy has extended its share repurchase program through 2018, and still has $454 million remaining in the authorization.
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The article Why MicroStrategy Shares Plunged originally appeared on Fool.com.
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