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