Confluent, Inc. (CFLT) shares tumbled 5.50% in after-hours trading on Wednesday, despite the company reporting better-than-expected first-quarter results. The sharp decline suggests investors may be focusing on other factors, potentially including the company's forward guidance.
For the first quarter of 2025, Confluent reported adjusted earnings per share of $0.08, surpassing the analysts' estimate of $0.07. Revenue came in at $271.1 million, also beating the expected $264.6 million. The company's adjusted operating income was $11.6 million, higher than the estimated $8.39 million, with an adjusted operating margin of 4.3%.
Despite these positive results, the after-hours plunge indicates that investors might be concerned about Confluent's future outlook. The company provided full-year guidance for adjusted EPS of about $0.36 and an adjusted operating margin of 6%. While these figures represent growth, they may not have met the market's more optimistic expectations, potentially explaining the stock's negative reaction post-earnings announcement.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.