GreenSky stock plunges after revenue, outlook miss expectations
Shares of fintech company GreenSky Inc. are down 38% in Tuesday morning trading after the company missed September-quarter revenue expectations and delivered a downbeat forecast for the December period. GreenSky, which enables lending at the point of sale, reported revenue of $113.9 million, whereas analysts tracked by FactSet were projecting $121.3 million. Earnings per share of 21 cents exceeded the FactSet consensus, which called for 20 cents. BTIG analyst Mark Palmer cited the company's disappointing outlook for its fourth-quarter earnings before interest, taxes, depreciation and amortization (Ebitda) when downgrading the stock to neutral from buy after the report. "While we had viewed GreenSky as an interesting opportunity due to what we had viewed as a mismatch between its growth rate and its valuation that developed during the months following its IPO in May, the gap between management's guidance today and our expectations was sufficiently wide to move us to the sidelines," he wrote. GreenSky shares are off 46% over the past month, while the S&P 500 has lost 5%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.