Quest Software shares hit by weak, preliminary Q2 results, lower forecast
Quest Software (NASDAQ:QSFT) shares tumbled more than 12% on Tuesday, as the company reported preliminary second quarter results that missed Street expectations, and revised its outlook for the full year downwards.
For the three months ending June 30, the company, which is based in California, said it expects pro forma earnings to be between 22 cents and 24 cents per share, on revenue in the range of $201 and $204 million.
Analysts expected earnings of 29 cents, on revenue of nearly $208 million.
Quest also slashed its previous guidance for fiscal year 2011, and now anticipates revenue growth of between 11% and 12%, below the original 16% growth forecast. It also expects pro forma operating margins to be between 19% and 20%, down from the 21% initially guided.
"Our previous guidance was based on the expected returns on the increased investments that we have been making in our business, including through recent acquisitions," said president and CEO, Doug Garn.
"We have adjusted our guidance to be consistent with our current expectations on the timing and magnitude of the returns on these investments."
Full financial results for the second quarter are due out on August 2, the company said.
Quest Software provides IT, application, database and Windows management solutions for more than 100,000 customers around the world.
Shares of the company dropped more than 12% near market close on Tuesday, to trade at $19.77.
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