E2open Parent Holdings Falls 20%+ After Software Firm Issues Poorly Received Forward Guidance

ETWO fell as much as 24.5% to a $3 intraday low after issuing the downbeat earnings news after the bell on Wednesday. The stock later partly recovered to end the session at $3.20, off 21.6% for the day.

The firm, which sells software for omnichannel and supply-chain management, said sales came in at $152.2 million for the three months ended Aug. 31. That missed analysts' $154.8 million consensus estimate, according to published reports.

E2open did say adjusted earnings per share totaled $0.05, reportedly matching analysts' consensus expectations.

However, that wasn't enough to overcome the company's cut to forward guidance. ETWO guided full-year revenue for FY2025 to $607 million-$617 million, reportedly down from the $630 million-$645 million that management had previously projected.

Published reports said the company's results and guidance prompted UBS to cut E2open's price target to $3,509 from a previous $4.20, while Morgan Stanley eased the stock's target to $4 from an earlier $5.10.

Still, Morgan reportedly maintained EWTO's "Equal Weight" rating, while UBS reiterated the stock's "Neutral" grade.