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Ariba (NASDAQ: ARBA) saw its stock drop Friday despite posting a profit in third quarter earnings, which exceeded Wall Street expectations.
However, the maker of spending-management software posted earnings that missed analysts’ estimates, according to Associated Press.
Shares in Ariba stock fell 36 cents, or 3.3 percent, to $10.51 at Friday’s close.
For the quarter that ended June 30, Ariba said late Thursday it earned $3.9 million, or 5 cents per share, compared with a loss of $4.3 million, or 5 cents per share, in the year-ago quarter. In the prior year's quarter, Ariba had higher operating expenses and revenue costs.
When excluding items, Ariba earned 17 cents per share, a penny more than analysts polled by Thomson Reuters expected.
The company's revenue dipped 1 percent to $83.9 million. That was lower than the $84.2 million analysts expected.
Ariba said subscription and maintenance revenue rose 12 percent to $55.4 million, while services and other revenues fell 20 percent to $28.5 million.
During a conference call with analysts, the company predicted fourth-quarter adjusted earnings of 15 cents to 17 cents per share on revenue between about $82 million and $84 million. Analysts expect 16 cents per share in earnings and $85.2 million in revenue.
In a Friday client note, Caris & Co. analyst Curtis Shauger downgraded the stock to "above average" from "buy," but kept his $12 price target.
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