Barracuda Plunges Most Ever After Missing Earnings Estimatesby
Barracuda Networks Inc. fell the most ever after reporting second-quarter revenue that missed analysts’ estimates.
The shares plunged 34 percent to $15.58 at the close in New York, the biggest one-day decline since the company’s initial public offering in November 2013. The stock has dropped 57 percent this year.
Second-quarter revenue was $78.4 million, the Campbell, California-based cloud-computing and data storage company said in a statement Wednesday. Analysts had projected $78.7 million, according an average of estimates compiled by Bloomberg.
The company also said it sees “some evidence that growth in the overall storage market has slowed.”
Following the release Tuesday, Macquarie Group Ltd. downgraded the stock to neutral from outperform, while Piper Jaffray Co. downgraded it to neutral from overweight. Both cut their target prices from $40 to $20. Stephens Inc. also reduced its rating to equal weight from overweight and cut its target price from $40 to $22.