Investing.com -- Endava (NYSE:DAVA) shares tumbled nearly 7% in premarket trading Wednesday after the British software maker lowered its full-year revenue outlook, which missed market expectations.
The company now anticipates revenue between £771.5 million and £773.5 million, down from its previous range of £795 million to £800 million. Analysts had been looking for £791.29 million.
Adjusted earnings per share (EPS) are expected to land between 111p and 113p, compared to a prior forecast of 120p to 123p and a consensus of 119p.
"The business environment continues to evolve rapidly and the quarter just ended has been challenging," said Endava CEO John Cotterell in a press release. "Clients’ desire to innovate remains strong; however, they are slow at signing larger contracts in the current uncertain macroeconomic environment."
"In this uncertain environment, we are focusing on what we can control to best position the business for the long term," he added.
For the third quarter, Endava reported adjusted EPS of 34p, topping the 31p estimate. Revenue came in at £194.8 million, slightly below the £197.84 million forecast.
Additionally, Endava’s board of directors authorized the repurchase of up to $50 million in additional shares, reflecting the management’s confidence in the company’s cash flow outlook and long-term strategy.