Houghton Mifflin Harcourt (HMHC) Stock Plunges on Q3 Miss, Lower Guidance

NEW YORK (TheStreet) -- Shares of Houghton Mifflin Harcourt (HMHC) were tumbling 24.19% to $9.40 on heavy trading volume late Thursday afternoon after the company posted weaker-than-anticipated results for the 2016 third quarter and reduced its full-year forecast.

Before today's market open, the Boston-based publishing company reported earnings of 73 cents per diluted share, falling short of analysts' estimates of 89 cents per share, according to FactSet.

Revenue fell 7% year-over-year to $533 million and was below Wall Street's projections of $583 million.

Billings dropped 9% to $620 million from last year. 

For the full year, Houghton Mifflin cut its revenue guidance to the range of $1.32 billion to $1.38 billion, down from its prior view of $1.49 billion to $1.56 billion. Analysts surveyed by FactSet are looking for $1.48 billion for 2016.

"While we are disappointed with the company's performance year to date, especially in the domestic education market, we are squarely focused on restoring growth to the business," Interim CEO Gordon Crovitz said in a statement.

About 4.23 million shares of the company have traded so far today, well above its 30-day average volume of nearly 733,000 shares.

Separately, 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.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.

The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

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

 

More from Markets

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec

Gold Prices Look 'Rich' at Current Levels - Here's What Could Change That

Gold Prices Look 'Rich' at Current Levels - Here's What Could Change That

To Win at Trade the U.S. Must Act and Behave Like China

To Win at Trade the U.S. Must Act and Behave Like China

Video: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Video: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron