KebNi shares fall on weak quarterly results, guidance

KebNi shares fell 8% on Tuesday after the company reported weaker-than-expected quarterly results and lowered its full-year guidance.

The business software provider posted adjusted earnings of 45 cents per share on revenue of $124 million for the quarter, both below analyst estimates of 52 cents per share and $131 million, respectively. Revenue declined 5% year-over-year, reflecting soft demand in its core enterprise segment.

KebNi also revised its full-year outlook, now projecting revenue between $510 million and $520 million, down from a prior range of $540 million to $560 million. Adjusted earnings guidance was reduced to $2.10-$2.20 per share from $2.40-$2.50 previously. The company cited slower-than-anticipated deal closures and macroeconomic uncertainty as key factors behind the downgrade.

Analysts at Stifel downgraded the stock to hold from buy, citing the weaker outlook and elevated valuation. "The guidance cut suggests demand remains challenged," the firm wrote in a note. Piper Sandler maintained its neutral rating but trimmed its price target to $65 from $70.

KebNi’s stock has declined 15% over the past three months, underperforming the S&P 500’s 4% gain in the same period. The company is scheduled to hold an earnings call with investors later this week to discuss the results in further detail.