Why Electronics For Imaging, Inc. Stock Plummeted Friday

What happened

Shares of mechanism peripherals association Electronics for Imaging (NASDAQ:EFII) were slammed on Friday following a company’s third-quarter gain release. The batch fell as most as 33.2% and is down 30% during a time of this writing.

The stock’s sell-off was expected triggered by a company’s worse-than-expected financial results that missed both analysts’ and management’s expectations. Revenue and non-GAAP EPS for a entertain were $248.4 million and $0.48, respectively. This compares to income and non-GAAP EPS of $245.6 million and $0.58 in a year-ago quarter.

A chalkboard blueprint of a batch draft display a batch cost falling

Image source: Getty Images.

So what

Both income and non-GAAP EPS were next expectations. Analysts were awaiting third-quarter income and EPS of about $258 million and $0.58, respectively.

“We are clearly unhappy in a third entertain results, that fell next a expectations mostly due to behind deals in a approach business,” pronounced EFI CEO Guy Gecht.

EFI batch has had a tough past 6 months. After today’s decline, shares are down a sum of about 36% during this period. Shares were harm in Aug when a association admitted to expected accounting woes.

Now what

To reaccelerate growth, Gecht pronounced a association is “reallocating bill and talent toward a largest opportunities, in weave and packaging, along with creation organizational changes and adding comparison positions to urge concentration and execution.”

Article source: https://www.fool.com/investing/2017/10/27/why-electronics-for-imaging-inc-stock-plummeted-fr.aspx

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