Hubspot Is Getting Beat Up, and Its Still Very Expensive to Own

Hubspot (NYSE: HUBS) shares have struggled since August, falling 30% from the stock's all-time high of approximately $205. The marketing and customer relationship management (CRM) software company's latest dip followed its Nov. 5 announcement of its Q3 earnings, despite reporting a 33% revenue increase and results that exceeded analysts' estimates on both the top and bottom lines. The company forecasted $181 million in revenue and earnings per share of $0.40 to $0.42 for Q4. Analysts were expecting $0.44 earnings per share for the next quarter, which caused some weakness.

These were mostly positive results that were a pleasant surprise and extended the company's rapid growth, which has averaged 41.2% over the past three years. Even the perceived bad news was relatively modest. In an earnings call, company management discussed some delays in hiring and the future effects of annualizing price increases in late 2018. Both are minor, known issues that the company is addressing. Even the disappointing Q4 forecast is only modestly lower than analysts' expectations, and it represents the shortest possible time frame for forecast results.

Image Source: Hubspot

Source Fool.com