Informatica plunges to 2-year low on 3Q outlook
NEW YORK -- Shares of Informatica Corp. tumbled Thursday after the business software maker forecast weak results in the third quarter, pointing to its struggling business in Europe.
Informatica said it expects adjusted net income of 25 to 27 cents per share and $189 million to $191 million in revenue in the third quarter. It said its operations improved in the U.S. and the Asia-Pacific region, but results in Europe fell short of its expectations.
"The disappointing European results reflect continued operational challenges that we are taking aggressive steps to address," said Chairman and CEO Sohaib Abbasi.
Analysts expected Informatica to report earnings of 33 cents per share and $199.2 million in revenue, according to FactSet.
The Redwood City, Calif., company is forecasting $123 million to $125 million in service revenue and $65 million to $67 million in license revenue. Informatica will report its full quarterly results on Oct. 25.
Informatica shares dropped $8.67, or 25.8 percent, to $24.96 in midday trading after falling as low as $23.83, its lowest level in more than two years.