SeaChange International Earnings: Here’s Why the Stock is Falling Now
SeaChange International Inc. (NASDAQ:SEAC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.55%.
SeaChange International Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 75% to $0.28 in the quarter versus EPS of $0.16 in the year-earlier quarter.
Revenue: Rose 5.66% to $44.58 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: SeaChange International Inc. reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.2. It missed the average revenue estimate of $44.69 million.
Quoting Management: “We’re very pleased with our results in the quarter, led by a strong double-digit sequential increase in revenue, non-GAAP operating income of 21% and significant cash generation,” said Raghu Rau, Chief Executive Officer, SeaChange. “The strong performance during the quarter and for the full year was driven by sales of our new products, increased product licensing revenues and aggressive cost reduction actions. These achievements underscore the noteworthy progress SeaChange has made across products, sales and operations since announcing our transformation strategy last year.”
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