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Investing.com -- Temenos (SIX:TEMN) shares dropped more than 5% Wednesday after the Swiss banking software firm reported first-quarter results that missed revenue expectations and showed weak growth in a key business segment.
Subscription and SaaS revenue fell 2% year over year, missing consensus estimates by 9%, despite a favorable comparison to the prior-year period, which had been disrupted by a short-seller report.
Analysts at Barclays (LON:BARC) and Jefferies flagged the performance as a key concern, noting it could dampen sentiment toward the stock.
The company cited a $5 million to $6 million impact from deals that were delayed in late March due to macroeconomic uncertainty.
Management said most of those deals were signed in April and issued rare quarterly guidance, forecasting 6% to 10% growth in Subscription and SaaS for the second quarter.
Still, the figures imply only about 3% growth in the first half, increasing reliance on a stronger second half to meet full-year goals.
Temenos reaffirmed its full-year guidance and announced a share buyback program of up to 250 million Swiss francs, set to begin April 28.
Barclays analysts noted the buyback is more accretive than previously expected, given the stock’s lower price, but lowered their price target to CHF67 from CHF74, citing currency headwinds.
Despite a 3% beat on operating profit, driven by lower expenses, investors appeared focused on the topline shortfall and questions about deal timing, sending the stock lower in early trading.