Why Shares of Model N Tanked Today

Shares of software company Model N (NYSE: MODN) tumbled Wednesday after it reported its fiscal fourth-quarter results. Though it beat Wall Street's consensus estimates for both earnings and revenue, investors appeared unhappy with management's guidance for its first quarter and fiscal year 2021.

The tech company's shares fell by as much as 18.3% in intraday trading and were down by 11.5% as of 1:53 p.m. EST.

For the period, which ended Sept. 30, Model N's non-GAAP diluted earnings per share of $0.14 easily beat analysts' consensus estimate of $0.09, and were an improvement from earnings of $0.12 in the year-ago quarter.

Source Fool.com