American Software Inc. (AMSWA)

Shares of American Software (AMSWA) dropped by 9.02% from $10.98 to $9.99 in the trading on Friday, Novemeber 17, 2023. The reason why AMSWA is down today is due to the company's recent financial results, guidance announcement and a cut in price target.

• Q2 Fiscal 2024 Results: American Software reported second-quarter fiscal 2024 non-GAAP earnings of 8 cents per share, meeting the Zacks Consensus Estimate. However, this represented an 11.1% drop in earnings compared to the previous year. Revenues for the quarter were $25.7 million, reflecting a 5.8% year-over-year decrease and falling short of the consensus estimate by 4.12%.
• Guidance: American Software provided fiscal 2024 revenue guidance in the range of $100 million to $104 million, significantly below the Zacks Consensus Estimate of $180 million. Total recurring revenues for the fiscal year are expected to fall between $85 million and $88 million, with adjusted EBITDA in the range of $14.5 million to $16 million.
• Analyst Perspective: B. Riley Securities lowered its price target on the stock from $17 to $16 following these results. The stock price decline likely reflects investor concerns about the company's financial performance and outlook, particularly the lower-than-expected revenue guidance for fiscal 2024.

Shares of American Software (AMSWA) dropped by 9.02% from $10.98 to $9.99 in the trading on Friday, Novemeber 17, 2023. The reason why AMSWA is down today is due to the company's recent financial results, guidance announcement and a cut in price target.

• Q2 Fiscal 2024 Results: American Software reported second-quarter fiscal 2024 non-GAAP earnings of 8 cents per share, meeting the Zacks Consensus Estimate. However, this represented an 11.1% drop in earnings compared to the previous year. Revenues for the quarter were $25.7 million, reflecting a 5.8% year-over-year decrease and falling short of the consensus estimate by 4.12%.
• Guidance: American Software provided fiscal 2024 revenue guidance in the range of $100 million to $104 million, significantly below the Zacks Consensus Estimate of $180 million. Total recurring revenues for the fiscal year are expected to fall between $85 million and $88 million, with adjusted EBITDA in the range of $14.5 million to $16 million.
• Analyst Perspective: B. Riley Securities lowered its price target on the stock from $17 to $16 following these results. The stock price decline likely reflects investor concerns about the company's financial performance and outlook, particularly the lower-than-expected revenue guidance for fiscal 2024.