LegalZoom Shares Tank 22% After First Quarter Results Miss Estimates

The company also gave an outlook for the second quarter that also disappointed Wall Street, adding to the negative sentiment.

The company said yesterday revenue in the first quarter rose 5% to $174.2 million. That missed the average estimate of $175.4 million expected by analysts, according to MT Newswires. Adjusted earnings rose to 9 cents in the three months ended March 31, up from 7 cents a year earlier, the company said in a press release. That's still below the 10 cents expected by analysts, according to the report.

For the second quarter, the company expects adjusted earnings before interest, taxes and depreciation will be in the range of $25 million to $27 million. That's below the $33.4 million average of analysts' estimates compiled by Bloomberg.

Bank of America Global Research analyst Mike McGovern cut his price target on the stock to $13, from $15, Reuters reported.