Cryptologic (NASDAQ:CRYP) 1st quarter results clearly disappointed investors. The issue is that CRYP's previous revenue guidance had included a one-time revision item, but did not previously note this. Wall Street had been building what turned out to be a $4 million, one-time item into their ongoing revenue models.
So there is disappointment and less trust of management among the analysts. The issue, a recurring one for Wall Street research, is that estimates are built completely around management guidance rather than actual research.
Discosure: We still own shares of CRYP.
CRYP 1-yr chart: