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This Supply Chain Stock Plummets 31%. Why Amazon Is Part of the Story.

1. SPS Commerce shares fell 23.73% after disappointing guidance. 2. Earnings of $1.13 beat estimates, but revenue missed projections at $189.9 million. 3. Seasonal impacts and Amazon policy changes negatively affected revenue recovery platform. 4. Fourth-quarter growth forecasted at 13-14%, a slowdown from earlier predictions. 5. Adjusted earnings expected between 98 cents and $1.02, below analyst expectations.

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FAQ

Why Very Bearish?

The significant drop in share price and downward guidance point to ongoing challenges. Historical precedence shows that similar earnings misses often lead to dramatic stock declines.

How important is it?

Disappointing earnings guidance tends to significantly impact investor sentiment and share performance.

Why Short Term?

Recent guidance indicates immediate challenges; future performance hinges on recovery actions.

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