By Connor Hart
Shares of Clarivate hit an all-time low after the company pulled its outlook for the year and posted what its chief executive called unsatisfactory third-quarter results.
The stock tumbled 27% to $4.82 on Wednesday, edging higher from its earlier low of $4.75. Shares are down 48% since the beginning of the year.
The London company, which provides data, analytics and workflow solutions, said it has removed its outlook for 2024, citing its recent chief executive transition.
Jonathan Gear stepped down from the company's top role in August. At that time, he was succeeded by Matti Shem Tov, who formerly was chief executive of ProQuest.
Shem Tov said Clarivate's third-quarter results were "unsatisfactory and reflect an overdependency on fluctuating transactional revenue and areas of the business with low margin characteristics." He added the company will work to improve its performance through a value creation plan that aims to improve sales execution and increase subscription and recurring revenue, among other operational changes.
In the recent quarter, Clarivate widened its loss to $65.6 million, or 9 cents a share, from a loss of $6.6 million, or 1 cent a share, in the same quarter last year.
Adjusted per-share earnings were 19 cents, in line with analyst expectations, according to FactSet.
Revenue fell 4% to $622.2 million, missing the $640.8 million that analysts polled by FactSet expected. Sales were hurt by a divestiture made earlier this year, as well as lower volumes across all its business units, the company said.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 06, 2024 13:12 ET (18:12 GMT)
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