AZPN - Why Aspen Technology Stock Crashed Today
2023-04-27 15:03:47 ET
Shares of Aspen Technology (NASDAQ: AZPN) plunged as much as 30% on Thursday morning, as investors digested a disappointing third-quarter earnings report. The maker of enterprise asset-management tools and services recovered slightly from that dip, settling down roughly 24% below Wednesday's closing price for most of the day.
Aspen's adjusted earnings fell 23% year over year to $1.06 per diluted share. The analyst consensus had called for earnings closer to $1.66 per share. The company delivered 22% growth on the top line as revenue came in at $230 million, but even here, your average analyst wanted more. Consensus estimates pointed to sales near $286 million.
Disappointment might not seem like the right reaction to a 22% revenue jump, especially in this challenging economy, but everyone wanted more. As it turns out, AspenTech hoped that the order volume from clients in bulk chemical production would bounce back after two consecutive weak quarters. Instead, the problem intensified and Aspen ended up missing its own and Wall Street's expectations as a result.
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Why Aspen Technology Stock Crashed Today