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Inovalon Holdings shares fall on slashed guidance

Inovalon Holdings opened for trading on the Nasdaq Stock Market, February 12, 2015.
Globe Newswire | AP
Inovalon Holdings opened for trading on the Nasdaq Stock Market, February 12, 2015.

Shares of Inovalon Holdings plummeted more than 35 percent in early trade Tuesday after the company slashed its outlook for 2016.

On Monday, the Maryland-based technology company said it reduced its guidance as it was unable to enter a collaboration agreement for an application in development, as a result of "unforeseen circumstances impacting the counter-party."

"While this is certainly not the situation we expected or desired, it does demonstrate the level of market opportunity for our platform capabilities, the significance of value that can be driven by those capabilities, and the size and scale at which Inovalon is being called upon to partner and deliver them," CEO Keith Dunleavy said in a statement.

Inovalon now expects full-year earnings per share between 32 cents and 33 cents and revenues in the range of $426 million to $428 million. The company previously forecast earnings per share of 39 cents to 46 cents and revenue between $470 million to $490 million.

Analysts previously projected Inovalon to report full-year earnings of 44 cents per share on revenue of $472.8 million, according to Thomson Reuters consensus estimates.

With Tuesday's declines, the stock has fallen more than 43 percent year to date.

Inovalon Holdings 5-Day Chart