Nimble Storage Falls to Record After Results Miss Estimates

Nimble Storage Inc. lost half of its market value, falling to the lowest since its 2013 initial public offering after reporting fiscal third-quarter revenue that missed analysts’ estimates and gave a forecast for the current quarter that also fell well short of projections.

The shares of the network storage company declined 51 percent to $10.05 at the close Friday, its worst single-day slide and lowest price since the December 2013 IPO. The company was already down 26 percent this year through Thursday. At least 11 analysts cut their recommendations or price targets on the stock.

Nimble Storage reported fiscal third-quarter revenue of $80.7 million, compared with analysts’ estimates for $87.5 million. The company said it expects fourth-quarter revenue of as much as $90 million, while analysts had been forecasting $99.3 million, on average.

The results and outlook were “sobering to say the least,” Mehdi Hosseini, an analyst at Susquehanna Financial Group wrote in a note to clients. While Hosseini and his colleagues cut their price target on the stock to $20 from $35, they said they retained a positive rating on the stock because the company’s lower market value increases the chance of it being a takeover candidate.

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