Kit Digital Drops to Record in Prague After Sales Miss Estimates
Kit Digital Inc. (KITD) fell to a record in Prague trading after the online video software maker missed its quarterly sales estimates and said its full-year guidance was too “high.”
The stock plunged 12 koruna, or 13 percent, to 83.7 koruna at 3:49 p.m., its lowest level since the company listed in Prague in January 2010. After a detailed review of earnings the management concluded its guidance was too “high”, Chief Executive Officer Barak Bar Cohen said in a statement yesterday. The company plans to publish revised guidance on May 15, together with first-quarter results, he said.
“The news is clearly negative and shows that management has not been honest with investors over the earnings performance and development,” J&T Banka AS’ analyst team, led by Milan Vanicek, wrote in a note to clients today.
The company reiterated on March 15 that it expects 2012 revenue to be between $320 million and $330 million.
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