Q2 Holdings ( NYSE: QTWO ) stock gapped down 13.1% in Tuesday morning trading as sell-side analysts downgraded the stock after the digital banking software firm's worse-than-expected Q3 results and full-year outlook suffered from persistent macroeconomic headwinds .
The company now expects 2022 adjusted revenue to be $568.0M-570.0M compared with the prior view of $577.5M-581.5M and the consensus of $577.6M. Adjusted EBITDA is expected to be $39.0M-41.0M in 2022, down from the previous range of $41.4M-44.4M.
“Our revised full-year outlook reflects our expectation to see continued pressure on our lower margin revenue streams and our focus on driving profitable growth,” said Q2 CFO David Mehok.
As a result, RBC Capital Markets analyst Daniel Perlin downgraded Q2 ( QTWO ) stock to Sector Perform from Outperform on the basis of large lenders deferring discretionary spend along with weakness in European demand and pressure on transaction revenue, he wrote in a note.
In another note, Piper Sandler analyst Arvind Ramnani lowered his rating on Q2 ( QTWO ) to Underweight from Neutral as macro pressures weigh. Still, he contended that "QTWO will deliver FY23 margin expansion as it expands its more profitable segments and maintains spend discipline."
The Quant system, meanwhile, screens QTWO shares as a Hold, and the average Wall Street analyst views the stock as a Buy.
Previously, (Nov. 7) Q2 Holdings GAAP EPS of -$0.48 misses by $0.05, revenue of $144.8M misses by $1.97M .
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Q2 Holdings stock drops as macro headwinds dent year outlook, analysts cut