Netsuite plunges after 2Q outlook fails to impress investors
NEW YORK—Shares of business management software company NetSuite Inc. plunged Friday after it said its second-quarter outlook failed to impress investors concerned about the wider economy and the company's ability to deliver solid profits this year.
Shares fell $3.46, or 15.5 percent, to $18.84 in afternoon trading. They earlier fell to a multiyear low of $17.33.
The company said it expects per-share results to range from break-even to a loss of 2 cents per share, excluding share-based compensation.
Analysts polled by Thomson Financial predict a loss of 1 cent per share. Analysts typically exclude one-time items.
ThinkPanmure analyst Michael Huang said that the company's outlook was not impressive enough to blow away skeptic concerns.
However, he saw the company's dropping share price as an opportunity.
"NetSuite shares could be weaker given some disappointment with the inline guidance but we would see this as a compelling entry point, given the magnitude of the opportunity," he said.
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