On Jun 20, The Ultimate Software Group Inc ULTI was downgraded to Zacks Rank #5 (Strong Sell).
The downgrade can be attributed to declining earnings estimates in the last 60 days primarily due to tepid guidance for the current quarter. The Zacks Consensus Estimates for 2017 and 2018 decreased 6.5% and 5.1% to $13.73 and $14.94, respectively.
The company's first-quarter results were mixed. While adjusted earnings of 27 cents per share beat the Zacks Consensus Estimate by 16 cents, revenues of $228.5 million missed the same.
Notably, Ultimate Software has beaten the Zacks Consensus Estimate in two of the four trailing quarters with an average positive surprise of 20.11%.
Tepid Q2 Guidance Hurt Shares
Ultimate Software has underperformed the Zacks categorized Computer Software-Services industry since it reported the first-quarter results on Apr 25. While the stock returned 2.7%, the industry gained 7%.
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