SFX Reports Q1

SFX Entertainment had a rocky day on Wall Street after reporting its first-quarter earnings prior to the bell May 15.

Shares of SFXE fell 21 percent before rallying to a 2 percent loss.

One analysis is that investors may have been initially spooked by its missed estimates. SFX reported a tripling of revenue to $33.3 million but costs were enormous and the company had an overall net loss of $.73 a share. Estimates were for sales of $63.2 million and a $.17 loss per share, according to the Motley Fool.

The good news is the company reported it will increase its festival count to 76 this year – a more than 30 percent leap.

As for the rally, investors may have realized that the company is still new and this was its inaugural first-quarter report as a publicly traded company, and only two analysts follow it, so estimates “are not as meaningful as they would normally be,” the Fool said. A market capitalization of just less than $600 million makes it vulnerable to wide intraday swings as well.