Keynote Systems Earnings: Here’s Why the Stock is Down Now

Keynote Systems Inc. (NASDAQ:KEYN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.09%.

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Keynote Systems Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 57.14% to $0.09 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Decreased 4.22% to $29.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Keynote Systems Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company beat the mean analyst estimate of $0.08. It beat the average revenue estimate of $29.03 million.

Quoting Management: Umang Gupta, Chairman and CEO of Keynote, said: “Our second quarter results reflect the operational challenges we discussed during our April 15th call. However, we are pleased to have posted $4.6 million of free cash flow, one of the strongest quarters in several years. Looking forward, we are dedicated to improving our operational effectiveness and furthering our product offerings in order to capture the compelling market opportunities in front of us.”

Key Stats (on next page)…

Revenue decreased 13.59% from $33.91 million in the previous quarter. EPS decreased 72.73% from $0.33 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 $0.25 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $1.00 to a profit of $0.68 over the last ninety days.

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