Why Tremor International Stock Was Diving This Week
A double miss in its latest set of quarterly earnings led to a sell-off in Tremor International (NASDAQ: TRMR) at the kickoff of this week. This was exacerbated by several analysts trimming their price targets on the advertising services company's stock. As a result, the shares were down by almost 25% week to date as of Friday morning before market open, according to data compiled by S&P Global Market Intelligence.
Early on Monday, Tremor published its third-quarter earnings results, revealing a relatively steep (19%) year-over-year decline in revenue to $70.9 million and a 49% tumble in net income to a bit below $17 million ($0.11 per share). Neither line item met the average analyst estimates, which projected almost $71.8 for revenue and $0.17 per share in net income.
Times are difficult in the ad industry just now, as many clients trim their budgets due to the potential macroeconomic slowdown. Tremor waxed optimistic about the future, however, saying that "anticipated industry secular growth trends and company-specific catalysts" should help mitigate that factor. Among those catalysts is the upcoming FIFA World Cup; the soccer tournament typically draws a massive global audience.
Source Fool.com
