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UPDATE: JMP Securities Downgrades RealPage On 'Very Disappointing' Preliminary Results

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Shares of RealPage (NASDAQ: RP) spiked down more than 26 percent in the after-market hours on Thursday after posting what JMP Securities analyst Patrick Walravens called, "very disappointing" preliminary second quarter results."

The company said revenue will be in the range of $93.8 to $94.8 million with an EBITDA of $11.5 to $12.5 million. The respective consensus figures for these metrics were $107 million and $25 million.

On these results, Walravens has downgraded RealPage from Market Outperform to Market Perform.

Walravens wrote, "In hindsight, we believe the company's push into marketing solutions for apartment owners over the pst few years was ill-timed because occupancy rates and rents are so high that owners feel little need to find new renters." He added that this issue may not be letting up anytime soon.

Furthermore, he sees CEO Steve Winn's 34 percent ownership of the company as a roadblock to a potential strategic acquirer or private equity firm, based on Winn's comments that he rather sell while the company is in an upswing rather than a downswing.

Shares of RealPage traded recently at $17.04, down 20.5 percent.

Latest Ratings for RP

DateFirmActionFromTo
Jul 2015Northland SecuritiesInitiates Coverage onOutperform
May 2015William BlairUpgradesUnderperformMarket Perform
May 2015Credit SuisseMaintainsUnderperform

View More Analyst Ratings for RP
View the Latest Analyst Ratings

Posted-In: JMP Securities Patrick WalravensAnalyst Color Earnings News Downgrades Analyst Ratings

 

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