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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

Must Read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Will Etsy's Recertification as a Socially Responsible Firm Help Its Stock?

Will Etsy's Recertification as a Socially Responsible Firm Help Its Stock?

Will Rally Software Development (RALY) Stock be Affected by Earnings Results?

Will Rally Software Development (RALY) Stock be Affected by Earnings Results?

June 4 Premarket Briefing: 10 Things You Should Know

June 4 Premarket Briefing: 10 Things You Should Know

3 Stocks Advancing The Computer Software & Services Industry

3 Stocks Advancing The Computer Software & Services Industry

Rally Software Development (RALY) Stock Surging on CA Technologies Purchase

Rally Software Development (RALY) Stock Surging on CA Technologies Purchase