InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Source: shutterstock.com/PeshkovaExela (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!
More Wednesday Stock Market News
- Elon Musk Sold Nearly $7 Billion in TSLA Stock. Here’s Why.
- NKLA Stock Pops as Nikola CEO Set to Retire
- Get Ready for Semi Trucks, Cybertrucks to Lift TSLA Stock
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.
More From InvestorPlace
- Buy This $5 Stock BEFORE This Apple Project Goes Live
- The Best $1 Investment You Can Make Today
- Early Bitcoin Millionaire Reveals His Next Big Crypto Trade “On Air”
- It doesn’t matter if you have $500 or $5 million. Do this now.
The post Why Is Exela (XELA) Stock Down 12% Today? appeared first on InvestorPlace.