Guidance Software Earnings: Here’s Why Investors are Not Happy Now

Guidance Software, Inc. (NASDAQ:GUID) 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 20.16%.

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Guidance Software, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.15 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Rose 3.38% to $26.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Guidance Software, Inc. reported adjusted EPS loss of $0.15 per share. By that measure, the company missed the mean analyst estimate of $-0.03. It missed the average revenue estimate of $30.2 million.

Quoting Management: Guidance Software President and Chief Executive Officer Victor Limongelli said, “While the macroeconomic environment has created some headwinds in the first half of 2013, we are continuing to execute on our long-term EnCase Everywhere strategy, with the addition of 65 new EnCase Enterprise customers during the quarter. We believe we are well positioned competitively, and well positioned to capitalize on the growth opportunity in the security space, as we get set to launch our third product built on the EnCase Enterprise platform. We are investing now in research and development, as well as expanded sales and marketing, to take advantage of the growth opportunity in front of us.”

Key Stats (on next page)…

Revenue decreased 25.77% from $36.24 million in the previous quarter. EPS decreased to $-0.15 in the quarter versus EPS of $0.17 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.07 to a loss $0. For the current year, the average estimate has moved down from a profit of $0.5 to a profit of $0.3 over the last ninety days.

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