NEW YORK (TheStreet) -- Shares of TriNet (TNET) - Get Report were falling 39.9% to $16.04 on heavy trading volume Tuesday after the business services company missed analysts' estimates for earnings in the second quarter.
TriNet reported earnings of 14 cents a share for the second quarter, below analysts' estimates of 27 cents a share for the quarter. Revenue decreased 2% year over year to $122.01 million for the quarter, missing analysts' estimates of $137.55 million.
"While our growth momentum remains robust, our results were impacted this quarter by a higher than expected number of large medical claims," President and CEO Burton M. Goldfield said in a statement. "We were disappointed that these claims were well in excess of our expected claims volatility."
Goldfield continued, "We continue to analyze this part of our business and consider options for addressing variability in medical and the predictability of its contribution to Net Service Revenues and profitability."
About 3.6 million shares of TriNet were traded by 10:19 a.m. Tuesday, well above the company's average trading volume of about 703,000 shares a day.