NEWR Stock Alert: Why New Relic Shares Are Plunging Today

New Relic (NYSE:NEWR) stock is falling hard on Wednesday following the release of its earnings report for its fiscal third quarter of 2022.

The New Relic (NEWR Stock) logo on a smartphone.

Source: rafapress / Shutterstock.com

The big news slamming the company’s shares is its adjusted losses per share of 18 cents. That’s a wider per-share loss than the 14 cents reported during the same time last year. It also failed to meet Wall Street’s estimate of -17 cents per share.

That’s unfortunate as New Relic’s revenue of $203.59 million was a blessing for the tech company. It’s a 22% increase compared to the $166.34 million reported in the same period of the year prior. Plus, it also comes in above the $200.44 million in revenue that analysts’ were looking for.

New Relic’s outlook for the fiscal fourth quarter of 2022 isn’t doing NEWR stock any favors today. While revenue ranging from $204 million to $205 million is solid, its adjusted losses per share range of 19 cents to 22 cents is troubling. That’s due to Wall Street expecting -2 cents per share in the upcoming earnings report.

The fiscal 2022 outlook from New Relic is another mixed bag. Revenue guidance of $784 million to $786 million would beat analysts’ estimate of $781.36 million. However, the company’s losses per share outlook of 72 cents to 75 cents would be a massive miss next to Wall Street’s -54 cents per share estimate.

The mixed earnings report from New Relic has NEWR stock seeing heavy trading today. As a result, some 5 million shares of the company’s stock are on the move. That’s a massive surge compared to its daily average trading volume of about 912,000 shares.

NEWR stock is down 28.6% as of Wednesday morning.

There’s more stock market news that investors will want to know about below!

We’ve got all the latest stock happenings that traders need to read about for Wednesday. Among that is what’s happening with shares of Lyft (NASDAQ:LYFT), Canopy Growth (NASDAQ:CGC), and Sundial Growers (NASDAQ:SNDL) stock. You can find all of that info at the following links!

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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.


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