Why RealPage (RP) Stock Is Falling Today

NEW YORK (TheStreet) --Shares of RealPage Inc. (RP) are down by -24.37% to $16.20 in pre-market trading on Friday after the company announced it cut its adjusted earnings and revenue guidance for the 2014 second quarter.

The company, which provides demand software solutions for the rental housing industry, announced Thursday that it is now expecting total revenue for the quarter ended June 30 to be between $93.8 million and $94.8 million, compared to its previous estimates of $106 million to $108 million.

RealPage said adjusted EBITDA will be between $11.5 million and $12.5 million for the 2014 second quarter, compared to its previous guidance of $25 million to $25.5 million.

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The company said its second quarter performance was impacted by lower than expected revenue from products and services related to leasing activity.
 

Separately, TheStreet Ratings team rates REALPAGE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate REALPAGE INC (RP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."

RP Chart RP data by YCharts

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