Yesterday, shares of cloud-based, end-to-end supply chain management software provider E2open Parent Holdings, Inc. (ETWO) dropped about 12%, after the company’s third-quarter numbers disappointed on the earnings front.
Higher Subscription and Professional services revenue pushed the total revenue to $137 million from $84.1 million for the prior-year period; however, it fell short of analysts’ estimates by $2 million.
Similarly, net loss per share at $0.19 missed analysts’ estimates by $0.19.
With this development in mind, let us take a look at the changes in ETWO’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, E2open’s top risk category is Finance & Corporate, contributing 48% to the total 50 risks identified. In its recent quarterly report, the company has added one key risk factor under the Macro & Political risk category.
ETWO noted that mandatory COVID-19 vaccine requirements could lead to higher costs and workforce restraints. Implementation of these requirements could also lead to attrition of critically skilled labor and absenteeism. These factors could adversely impact ETWO’s business and results.
Compared to a sector average of 13%, ETWO’s Macro & Political risk factor is at 8%.
Tracking Insiders
Keeping a tab on insiders stocks can provide timely insights for retail investors. According to TipRanks data on Insider Activity, insiders have bought E2open shares worth $1.4 million in the last three months, indicating a very positive insider confidence signal for the stock based on 9 insider transactions in the last 3 months.
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