|XOXO got hammered on Friday.|
The press release: finance.yahoo.com
XO Group slides after reporting lower than expected earnings
Shares of women's media and technology company XO Group (XOXO) are sliding after the company reported lower than expected fourth quarter earnings last night. WHAT'S NEW: XO Group reported fourth quarter adjusted earnings per share of 2c, which was below analysts' consensus forecast of 11c per share. The company reported fourth quarter revenue of $32.6M, falling short of analysts' estimates of $33.9M. XO Group also announced that it appointed Michael Steib as its new CEO and said Co-Founder David Liu will continue guiding the company's overall direction as Chairman of the board. WHAT'S NOTABLE: During the company's earnings conference call last night, XO Group said it expects revenue growth rates will be consistent with the previous five years. The company said it "remains cognizant" that it will take time for the cumulative momentum of its efforts to manifest in more substantial year-over-year growth rates. The company also said its China business continues to be in investment mode and has long-term promise. XO Group expects to allocate resources to this business, likely at similar levels as it did in FY13. ANALYST REACTION: Earlier today, B. Riley downgraded XO Group from Neutral to Buy following the company's fourth quarter results. The firm lowered its price target on the stock to $10 from $15. PRICE ACTION: During morning trading, shares of XO Group slid $1.93, or 16.22%, to $9.97.