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Tuesday, April 28, 2015

Twitter Spooks Investors With Bungled Earnings Release, Shares Plunge

Twitter was forced to release its quarterly numbers early after a markets data company found a copy online. Investors didn’t like what they saw.

Dan Kitwood / Getty Images

Twitter shareholders were spooked on Tuesday when the company's quarterly results, showing disappointing revenue growth, were released early by an upstart data firm.

Shares of Twitter fell as much as 6%, as investors digested the lackluster results, before being halted by the New York Stock Exchange. The stock fell as much as 19% after the halt was lifted.

The results were published during trading hours by Selerity, a data company, which said it had found the information already posted on Twitter's investor relations website. Twitter was scheduled to release the information after the market closed.

But the leak forced Twitter to publicize its results ahead of schedule. The N.Y.S.E. halted trading in Twitter shares before the company officially published its numbers.

Twitter announced revenue of $436 million in the first quarter, a 74% increase from the period a year earlier but lower than Wall Street had expected.

The company reported profit of 7 cents a share, according to a nonstandard metric that analysts use. That exceeded analysts' expectations of 4 cents a share.


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