NKLA - Why Is Exela (XELA) Stock Down 12% Today?
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Exela (NASDAQ:XELA) stock is falling on Wednesday after the business process automation company reported preliminary results for the second quarter of 2022.
The bad news for XELA stock starts with the company’s adjusted earnings per share of -$3.22. That’s a massive miss next to Wall Street’s estimate of -$1.20 per share for the quarter. Even if it is better than the -$6.60 per share reported in the same period of the year prior.
Investors following XELA stock will note that this isn’t the first time it’s missed EPS estimates in recent history. In fact, the company has failed to surpass EPS estimates in its previous four earnings reports.
Not helping matters is Exela’s revenue of $266.8 million. Yet again, that’s nowhere close to the $285.25 million that analysts were looking for during the period. It’s also a 9% drop from the $293 million reported in the second quarter of 2021.
The decrease in revenue reported by Exela is due to a 12.6% year-over-year decrease in ITPS revenue. XELA attributes this drop to a network outage that was experienced during the second quarter of the year.
Par Chadha, Executive Chairman of Exela, said the following in the earnings report.
“Our business is prepared for tomorrow with tenured management and many additional new leaders with fresh ideas, who together are working on improving operating results while combating headwinds from the strong dollar, tight job markets, inflation and a network outage.”
XELA stock is down 12.2% as of Wednesday morning.
There’s more recent stock market news for traders to dive into below!
We’ve got all the hottest stock market news for Wednesday ready to go in one place! That includes what has shares of Tesla (NASDAQ:TSLA) and Nikola (NASDAQ:NKLA) stock are in the news today. You can find out all about that at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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