7 Rating Changes For Rubicon On Weak EPS Guidance

The Rubicon Project Inc RUBI, a technology platform that automates the purchase and sale of advertisements for both buyers and sellers, saw its shares collapse more than 30 percent on Wednesday and hit a new 52-week low of $9.00.

Rubicon reported its second-quarter results after Tuesday's market close. The company said that it earned $0.17 per share on revenue of $70.5 million — exceeding Wall Street's expectations of $0.10 per share and $63 million.

However, Rubicon's outlook frightened investors. The company said that it expects to earn $0.07 to $0.09 per share in the third quarter on revenue of $64 to $70 million. Analysts were also modelling the company to earn $0.12 per share on revenue of $70 million.

Related Link: Rubicon's Headwinds Cause A 35% Price Target Cut From Citi; >27% Pre-Market Stock Drop

Rubicon's full-year outlook was also alarming. The company expects to end fiscal 2016 with a full-year earnings per share of $0.75 to $0.85 on revenue of $275 to $305 million. By comparison, the Street was modeling an earnings per share of $0.90 on revenue of $295 million.

Rubicon's guidance prompted a slew of downgrades from Wall Street's top analysts.

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At time of writing, Rubicon was down 32.55 percent on the day at $9.22.

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Posted In: Analyst ColorEarningsNewsDowngradesAnalyst RatingsMoversTechDowngradesEarningsRubiconThe Rubicon Project
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