Shares of Luxoft Holding Inc. (NYSE: LXFT) were down 14.1% as of 3:15 p.m. EST after the software development company announced solid fiscal second-quarter 2019 results, but followed with disappointing forward guidance.
On the former, Luxoft’s quarterly revenue climbed a modest 0.2% year over year, to $228.4 million, within its guidance provided in August for a range of $225 million to $230 million. That translated to adjusted net income of $25.1 million, or $0.74 per share, which was well above the $0.63 per share most investors were expecting.
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“Our second quarter results demonstrate continued execution of our strategic priorities and transformation initiatives,” stated Luxoft CEO Dmitry Loschinin. “We continue to diversify our revenue and realign our focus and resources to the highest growth opportunities.”
To that end, Luxoft’s top two accounts comprised 30.2% of total revenue, marking a 5.2-percentage-point decline from the same year-ago period. Its top 10 accounts generated 54.3% of total sales, down from 57.7% a year ago.
Still, Luxoft anticipates revenue for the current fiscal third quarter in the range of $230 million to $235 million, well below Wall Street’s consensus estimates for closer to $250 million.
“While we expect some headwinds during the second half of the year,” added Loschinin, “we are confident that further execution of our strategy will strengthen our long-term growth profile and position us to deliver increasing shareholder returns.”
That’s fair enough. But for investors whose patience is wearing thin, it certainly doesn’t take the sting away from today’s declines or the fact that this is the fourthstraightreport in which Luxoft’s outlook has left the market wanting more.
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