RealPage stock falls 14 pct as outlooks disappoint

RealPage stock drops 14 percent as 2012, 1Q guidance comes in below analysts' expectations

Associated Press

CARROLTON, Texas (AP) -- RealPage Inc.'s stock sank more than 14 percent on Friday after the company's revenue fell short of analysts' expectations, along with its forecasts for its first-quarter and full-year earnings.

THE SPARK: RealPage, which provides software and related services to residential landlords, anticipates full-year adjusted earnings of 46 cents to 49 cents per share on revenue of $320 million to $330 million. For the first quarter, it expects adjusted earnings of 10 cents per share on revenue of $73 million to $74 million.

Analysts polled by FactSet on average were predicting full-year earnings of 49 cents per share on revenue of $329.4 million and first-quarter earnings of 11 cents per share on revenue of $77.6 million.

RealPage said late Thursday that it returned to fourth-quarter profitability, posting net income of $241,000, which amounted to breaking even per share. A year earlier the Carrolton, Texas, company lost $186,000, also breakeven on a per-share basis.

Excluding a stock-based compensation expense and other one-time items, the company said it earned 10 cents per share. That's what analysts were expecting, but its revenue for the three months that ended Dec. 31 was $71.1 million. That was up 30 percent from the $54.1 million it reported a year earlier but short of Wall Street's forecast of $73.9 million.

For the year, RealPage lost $1.2 million, or 2 cents per share. That compares with earnings of $67,000, or 7 cents per share, in the previous year. Annual revenue increased 37 percent to $258 million from $188.3 million.

STOCK MOVEMENT: Shares of RealPage fell $3.43, or 14.1 percent, to $20.76 Friday afternoon. The stock has traded in a range of $18.17 to $32.83 over the last year.

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