JDA Software Shares Plunged: What You Need to Know
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What: Shares of supply chain software specialist JDA Software (NAS: JDAS) fell as much as 12% after reporting weak second-quarter results.
So what: Both revenue and earnings fell well short of targets. Sales climbed 3% to $162.4 million, while profit declined $0.03 from last year's Q2 to $0.45 a share. Analysts were expecting $169.8 million and $0.55, respectively, according to data compiled by Yahoo! Finance.
Now what: I'm more troubled by CEO Hamish Brewer's comments from the press release. He said that while the Q2 performance "did not meet our expectation," the company's outlook for the second half of the year "remains strong." Why? I have no idea, because Brewer never gave an explanation. There are better software infrastructure stocks, Fool, includingIBM (NYS: IBM) .
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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He owned shares of IBM at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.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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