Why Connected Supply Chain Software Platform E2open Shares Are Higher Today
Portfolio Pulse from Lekha Gupta
E2open Parent Holdings Inc (NYSE:ETWO) shares increased by approximately 11% in premarket trading following the release of their Q3 FY24 results. The company reported a slight revenue decline of 4.5% year-over-year to $157.5 million, which still beat the consensus estimate of $154.3 million. GAAP subscription revenue decreased by 1.5% year-over-year to $132.8 million. Adjusted gross profit and EBITDA also saw declines, but the company maintained or improved margins compared to the previous year. Adjusted EPS met consensus estimates at $0.04. The company has adjusted its FY24 revenue guidance slightly and expects a modest organic growth in subscription revenue. CFO Marje Armstrong expressed confidence in the company's direction despite market uncertainties.
January 10, 2024 | 2:03 pm
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POSITIVE IMPACT
E2open's stock rose after reporting Q3 FY24 results with higher revenue than expected and maintaining adjusted EPS in line with consensus. The company's adjusted FY24 guidance shows confidence in future growth.
The positive reaction in ETWO's stock price is likely due to the company's revenue beating estimates and the adjusted EPS meeting expectations, which can be seen as a sign of stability. The slight adjustment in FY24 guidance, along with the CFO's optimistic comments, may also contribute to investor confidence in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100