Shares of Sapiens International Corp. (NASDAQ:SPNS) plunged by 21.4% to $31 in premarket trading on Monday after the insurance software provider reported quarterly earnings and revenue that fell short of Wall Street expectations.
The company’s third-quarter revenue came in at $137 million, below analysts’ estimates of $140.1 million, according to data from LSEG.
Adjusted earnings per share for the quarter were reported at 37 cents, narrowly missing the 38 cents expected.
The disappointing results come as Sapiens also revised its revenue forecast for the full year, reducing its adjusted revenue guidance to a range of $541 million to $546 million, down from the previous outlook of $550 million to $555 million.
This new forecast also lags behind analysts’ projections of $552.7 million, raising concerns about the company’s near-term growth trajectory.
As of Monday, two of five brokerages rate Sapiens stock as a "buy" or higher, with one maintaining a "hold" recommendation, and two advising "sell."
Despite today’s drop, Sapiens’ share price has risen 36.3% year-to-date.