Green Dot (NYSE:GDOT) shares plunged in Friday trading after the pre-paid debit card company reported lower-than-expected profits and cut its outlook for the rest of the year.
During the second quarter, Green Dot said it earned $10 million, down 17% from $12 million in the same period last year.
Adjusted EPS was 35 cents, which disappointed analysts, who were looking for 38 cents, the Associated Press noted.
Investors panicked. Green Dot shares plummeted more than 58% in Friday afternoon trading, falling below $10 a share.
The company predicted full-year earnings of between $1.29 and $1.32 a share, down substantially from prior guidance of between $1.65 and $1.70. Company officials cited growing competition as part of the reason for the diminished outlook.
Green Dot isn’t the only company to see its shares crash after missing quarterly estimates. Last week Chipotle Mexican Grill (NYSE:CMG) shares dove more than 22% after the company reported second-quarter earnings that topped analysts forecasts, but fell short on revenues.