Commtouch Software Earnings: Here’s Why Investors are Selling Shares Now

Commtouch Software Ltd. (NASDAQ:CTCH) had a loss and missed Wall Street’s expectations, AND 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 17.49%.

Commtouch Software Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.0 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Rose 42.15% to $8.06 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Commtouch Software Ltd. reported adjusted EPS loss of $0 per share. By that measure, the company missed the mean analyst estimate of $0.01. It missed the average revenue estimate of $8.13 million.

Quoting Management: “David brings an extensive security, networking, storage, and systems management background and has a long track record of building high performing teams and scaling businesses,” said Lior Samuelson, Commtouch’s chairman of the board. “We are very pleased to welcome him to the team.”

Key Stats (on next page)…

Revenue increased 1.64% from $7.93 million in the previous quarter. EPS decreased to $0.0 in the quarter versus EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.04 and has not changed. For the current year, the average estimate has moved down from a profit of $0.11 to a profit of $0.1 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)