EFI's Delay in Second Quarter Results Shakes Investor Confidence
By WhatTheyThink
On Thursday EFI announced that the company was postponing its second quarter results citing an audit of the company’s accounting practices. "EFI expects to report a material weakness in internal control over financial reporting related to this matter," the company said its statement.
The market response was swift with the stock losing 45% on Friday. The stock closed at $26.05 down from $47.66.
Morgan Stanley downgraded the company from "Equalweight" to "Underweight". Analyst Katy Huberty cited "months of uncertainty" with a accounting investigation.
Investment banking firm Stifel Nicolaus analyst Aaron Rakers suspended his rating on EFI given the "uncertainty of the duration, scope and timing".
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