Informatica Stock Opens Way Down After Q2 Warning

Informatica (INFA) gapped down more than 29% to a two-year low in early trading Friday, after the data-integration company warned late Thursday that its Q2 would miss expectations, as we reported.

Analysts reacted to Thursday's announcement by Informatica with a wave of downgrades early Friday. JMP Securities analyst Patrick Walravens kept his market outperfrom rating on the stock but cut his price target to 48 from 61. He also said he retained his confidence in CEO Sohaib Abbasi given his record of meeting or beating estimates for 31 quarters in a row before now.

Informatica late Thursday said Q2 sales came in at about $188 million to $190 million, with the midpoint down 2% from the year-earlier quarter. It sees earnings per share minus items at 27 cents or 28 cents, down from 33 cents. Analysts were expecting about $217 million and 37 cents. It would mark its first decline in year-over-year profit since Q4 2008.

The stocks of other companies that provide products and services to data centers continued to slide in sympathy. VMware (VMW) was down 6.3% in early trade, and Citrix Systems (CTXS) down 8.2%. F5 Networks (FFIV) dropped 6.5% and Oracle (ORCL) was down 2.3%