Why GreenSky Stock Plummeted Today

Shares of GreenSky (NASDAQ: GSKY) have plummeted today, closing down 18% after the company reported first-quarter earnings. The financial tech specialist missed expectations for both the top and bottom lines.

Revenue in the first quarter came in at $121.2 million, shy of the $123.5 million that analysts were modeling for. That led to a net loss of $10.9 million, or $0.05 per share. Wall Street was looking for EPS of $0.05. GreenSky adopted the new current expected credit loss (CECL) methodology during the quarter, which led to the recognition of a noncash increase in reserves of $18.4 million and a liability of $118 million.

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Source Fool.com