Dividend Stocks

Why Is SentinelOne (S) Stock Down 37% Today?

SentinelOne (NYSE:S) stock isn’t doing so hot on Friday following the release of the company’s earnings report for its first quarter of fiscal 2024.

The bad news for S stock comes from the company’s outlook in this earnings report. That includes its estimate of $141 million in revenue for the second quarter of the fiscal year. That’s nowhere close to the $151.41 million of revenue that Wall Street is expecting for the quarter.

Additionally, SentinelOne’s guidance includes its expectation for revenue to range from $590 million to $600 million in fiscal 2024. Yet again, that would have it soundly missing analysts’ revenue estimate of $638.44 million for the year.

Q1 Earnings Also Hit S Stock

Weak revenue is a trend for SentinelOne today with its Q1 earnings including $133.4 million. That failed to reach the $136.61 million in revenue that Wall Street was expecting. Even if it’s a 70% increase year-over-year from $78.3 million.

Alongside that revenue is the company’s adjusted earnings per share of -15 cents for the first quarter of the fiscal year. This is the one bright spot for holders of S stock as it beat out analysts’ -17 cents per share estimate. It’s also better than the -21 cents per share from the same time period last year.

Dave Bernhardt, chief financial officer of SentinelOne, said the following in the earnings report:

“Even in a tough quarter, we achieved our seventh consecutive quarter of over 25 percentage points year-over-year improvement in operating margins.” We’re committed to selectively investing in key growth areas, managing our cost structure, and achieving our profitability targets.”

S stock is down 36.6% as of Friday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.