QuinStreet (QNST) shares plunged 12.42% in Thursday's trading session following the digital marketing company's release of its third-quarter earnings report. The significant drop reflects investor disappointment with the company's mixed results and decision to maintain its full-year outlook, despite showing substantial year-over-year growth.
The company reported adjusted earnings per share of $0.21, surpassing analyst expectations of $0.20 and marking a impressive 250% increase from the same period last year. However, QuinStreet's quarterly sales of $269.84 million fell short of the consensus estimate of $270.35 million, albeit by a narrow margin of 0.19%. While the revenue miss was slight, it appears to have weighed heavily on investor sentiment, especially when combined with the company's maintained full-year guidance.
QuinStreet reaffirmed its fiscal year 2025 revenue outlook of $1.065 billion to $1.105 billion, aligning with the consensus of $1.09 billion. The decision not to raise guidance, despite the strong earnings beat, seems to have disappointed investors who were likely hoping for more aggressive growth projections. This conservative stance, coupled with the minor revenue miss, appears to have triggered a significant sell-off, resulting in the stock's sharp decline during the trading session.
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.