Oppenheimer changed their price target for Informatica from $57.00 to $46.00 and Deutsche Bank downgraded their rating of shares from “buy” to “hold.” The downgrades came shortly after INFA reduced its second quarter earnings guidance to below Wall Street analysts’ estimates. INFA expects Q2 revenue to be within the $188 million to $190 million range, with non-GAAP earnings between 27 and 28 cents a share. Analysts expected earnings of $217.2 million and 37 cents respectively. INFA also agreed on a $100 million stock buyback.
Sohaib Abbbasi, Informatica Co.’s CEO admitted, “clearly, we did not adapt as rapidly as we should have to the changing macroeconomic environment, especially in Europe.” Mr. Abbasi plans to increase his company’s growth efforts to adjust for the contracting global economy.
David Cornes holds a degree in economics from the University of Montana.