Coupa Stock Plunges On Weak Guidance Amid Acquisition Spree

Coupa Software (COUP) on Monday delivered January-quarter earnings and revenue that topped estimates amid its acquisition spree. But Coupa stock plunged as management’s guidance for the current fiscal year fell far short of expectations.




X



San Mateo, Calif.-based Coupa reported fourth-quarter earnings after market close. Shares plunged 28% to near 64 in extended trading on the stock market today.

In Monday’s regular session, Coupa stock had retreated 9.6%.

The software maker said that on an adjusted basis, Coupa earnings rose 12% to 19 cents per share. Revenue climbed 18% to $ 193.3 million.

Analysts expected Coupa earnings of 5 cents on revenue of $ 186.2 million. A year earlier, Coupa earned 17 cents a share on sales of $ 163.5 million.

Coupa Stock: Guidance Misses Estimates

In the fourth quarter, billings rose 18% to $ 318.5 million, the company said. For the current 2023 fiscal year, the maker of business spending management software forecast revenue of $ 838 million at the midpoint of its guidance vs. estimates of $ 876.4 million.

Coupa says it expects adjusted profit of 17 cents. Analysts had predicted 73 cents.

Heading into the Coupa earnings report, the company’s stock owned a Relative Strength Rating of 10 out of a possible 99, according to IBD MarketSmith analysis.

Coupa stock has retreated 46% in 2022.

Coupa’s software products cover employee travel and expense management, procurement and invoicing.

Since late 2018, Coupa has been on an acquisition spree. It purchased Llamasoft, Bellin, Hipperos, Exari and Yapta.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns for Coupa stock and others is one key to the investment guidelines.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

How To Use The 10-Week Moving Average For Buying And Selling

Leave a Reply

Your email address will not be published.