Why Rally Software Development Corp (RALY) Is Lower on Friday

NEW YORK (TheStreet) -- Rally Software Development Corp (RALY) is trading lower on Friday after first-quarter and fiscal 2015 earnings guidance fell below analysts' estimates.

By midafternoon, shares had slipped 7.2% to $16.76.

Trading volume of 1.3 million was nearly six times its three-month daily average.

The cloud computing specialist said it expects first-quarter sales growth of 21% to 22% over the year-ago quarter with revenue between $19.4 million and $19.6 million. Analysts surveyed by Thomson Reuters had expected sales of $19.61 million for the April-ending quarter.

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An estimated adjusted net loss between 53 cents and 50 cents a share came in wider than the 37-cents-a-share loss analysts had forecast.

Over fiscal 2015, management anticipates revenue of $91.5 million to $93.5 million, a 23% to 26% year-over-year increase, with a net loss between $1.61 and $1.56 a share.

Analysts had expected a fiscal net loss of $1.25 a share and revenue of $92.39 million.

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