Why Avid Technology Stock Plunged Today
Shares of Avid Technology (NASDAQ: AVID) have plunged today, down by 32% as of 2 p.m. EDT, after the company reported disappointing second-quarter earnings results. The digital media solutions specialist also elaborated on its full-year outlook.
Revenue in the second quarter was essentially flat at $98.7 million, missing the consensus estimate of $101.3 million in sales. Avid's guidance had called for $97 million to $105 million in Q2 sales. E-commerce revenue increased 19% and recurring revenue accounted for 58% of sales on a trailing-12-month basis. That all translated into adjusted earnings per share of $0.02, shy of the $0.04 per share in adjusted profits that analysts were expecting.
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