NEW YORK ( TheStreet) -- Last night Informatica (INFA) negatively preannounced earnings and shares are down over 26% in premarket. The company blamed softness in Europe and also internal execution issues. The Europe weakness isn't a surprise especially after Oracle and Adobe both saw European slowness but the magnitude of the miss was. License revenues are now expected to fall 17-19% versus the positive 10% consensus. Revenues missed consensus by 13% and earnings by 24%.Europe certainly was a factor but it's also company specific issues with a management transition and sales execution issues as well as tougher competitors in Oracle (ORCL), SAP (SAP - Get Report), IBM (IBM - Get Report) as well as Citrix Citrix Systems (CTXS - Get Report) and VMware VMware (VMW - Get Report). It's always interesting to look at a stock that falls this much in a day to potentially buy it, but this one could stay depressed for a while - especially given its head of worldwide sales leaving and new products from its competitors (especially at SAP and Oracle). Plus it has a P/E multiple of 30x - so there is no margin for error.
Stephanie Link's Can Kickers: Notes on Informatica
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.