Bazaarvoice Stock Tanks 17% Inspite Of Earnings Beat In Q1 2014

Bazaarvoice (NASDAQ: BV), the online platform capturing word of mouth reviews, came out with its results for Q1 2014 on Wednesday after market hours. The company had a better than expected quarter to start the new financial year. The company reported a 25%Y/Y jump in revenues and also beat the analyst earnings estimates by a margin of 3 cents. The company continued with its history of operating losses and negative earnings reporting a per share loss of 5 cents. Although the company beat analyst expectations for revenue as well as earnings, the stock price tanked over 17% in the last trading session. This is contrary to regular investor behaviour in the market. A look at the insider activity suggests that there has been no big insider selling, indicating that the insiders have a firm belief in the long term gains from of the stock. The only possible reason for the stock to have fallen is the fact that the management failed to raise FY 2014 estimates inspite of having a better than expected quarter. The management maintained its earlier full year guidance of 26 cents loss per share. The market did not take kindly to this fact and this is one probable reason the stock has been through a steep fall following the earnings call. Following the 17% fall in yesterday’s regular trading session, the stock fell a further 2% in extended trade.

To see Bazaarvoice’s latest stock price movement, click here (NASDAQ: BV)

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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