Why Pegasystems Inc. Stock Fell 11% Today

Shares of Pegasystems (NASDAQ: PEGA) took a wild ride on Thursday. The maker of cloud-based customer-relations management software reported second-quarter results on Wednesday night, and investors didn't quite know what to do with them. Pegasystems shares rose as much as 2.7% early on, but then turned downward for a steady slide throughout the day. At the end of the day, the stock closed 10.8% below Wednesday's closing prices.

Image source: Pegasystems.

Second-quarter sales rose 5% year over year, landing at $198 million. Pegasystems' GAAP earnings per share more than doubled from $0.06 to $0.14, but adjusted earnings fell from $0.19 to $0.15 per share instead. That disconnect between GAAP and non-GAAP results probably played a large part in Pegasystems' erratic stock chart on Thursday. For what it's worth, analysts were looking for adjusted earnings of $0.17 per share on revenues near $206 million.

Source: Fool.com