Shares of Boingo Wireless Inc. took a dive Friday following the company’s disappointing earnings.
The stock closed down $1.21, or more than 15 percent, to $6.77 on the Nasdaq. Shares had fallen as low as $6.45, a nearly 20 percent drop, during morning trading.
The Westwood Wi-Fi provider reported earnings Thursday after market close.
Revenue for the fourth quarter was up 8 percent to $28 million, just slightly ahead of Wall Street expectations of $27.5 million. Net income was 3 cents per share, which missed the expected 6 cents.
Boingo also reported that it now estimates first quarter revenue between $21 million to $23 million, below Wall Street’s estimated $27.9 million. The company estimates a loss for the quarter, while Wall Street estimated 7 cents per share.
Boingo Chief Executive David Hagan called 2012 a transition year for the company as it repositions its business to focus more on mobile data.
For reprint and licensing requests for this article, CLICK HERE.