Why Imperva (IMPV) Stock Is Slumping Today

Imperva (IMPV) stock is falling on Tuesday afternoon after the company warned about its 2016 second quarter results late yesterday and is said to be exploring a sale.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Imperva (IMPV) - Get Report are dropping 4.76% to $45.85 on heavy trading volume Tuesday afternoon after the company warned that 2016 second quarter results will likely fall short of analysts' expectations.

The Redwood City, CA-based cyber security company now sees revenue between $57.5 million and $58 million vs. its previous guidance of $65.5 million to $66.5 million.

Imperva also now forecasts a loss of 20 cents to 22 cents per share compared to its prior projection for a loss between 2 cents and 4 cents per share.

Analysts are modeling a loss of 4 cents per share on revenue of $66.06 million.

Additionally, the company hired Qatalyst Partners to explore a sale after it received unsolicited takeover interest, according to sources cited by Bloomberg.

Pacific Crest Securities cut its price target on shares to $57 from $65 and maintained its "overweight" rating.

"Imperva pre-announced disappointing Q2 results, missing both revenue and EPS targets. Management cited elongating sales cycles, driven primarily by changes in buying behavior in the DAM market, but noted consistency in its Incapsula business," the firm wrote in a note.

The stock was also downgraded to "hold" from "buy" at Deutsche Bank earlier today.

About 2.15 million of the company's shares changed hands so far today vs. its average 30-day volume of 832,880 shares per day.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: IMPV

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