Why Ellie Mae Stock Is Sinking Today

Shares of Ellie Mae (NYSE: ELLI) are sinking today, down by about 16% as of 12:30 p.m. EDT, after the company reported second-quarter earnings and reduced guidance.

Ellie Mae has enjoyed unrelenting growth in the years following the financial crisis as banks and other mortgage originators turn to its software packages to help them navigate new mortgage regulations and compliance requirements.

This quarter, Ellie Mae reported that its net income increased 78% compared to the year-ago period. However, much of that increase was driven by tax impacts, rather than operating factors. On a pre-tax basis, income grew just 6.7% in the second quarter compared to the year-ago period.

Source: Fool.com