Kornit Digital Stock Tanks 33% After Revenue Outlook Cut

Shares of Kornit Digital Ltd. (KRNT) are plunging over 33% on Wednesday morning after the company lowered its outlook for the second quarter.

KRNT is currently trading at $21.02, down $10.54 or 33.40%, on the Nasdaq.

The company now expects revenues of $56.4 million to $59.4 million, compared to previous estimate of $85 million to $95 million. Analysts polled by Thomson Reuters currently expect revenues of $91.41 million.

The company currently expects third quarter revenues to be at or above second quarter revenues.

"The overall re-calibration of e-commerce growth, combined with macro headwinds which meaningfully accelerated in the last few weeks of the quarter, as well as delays in the completion of customer production facilities, resulted in a significantly slower pace of direct-to-garment (DTG) systems orders in the second quarter as compared to our prior expectations," said Ronen Samuel, Chief Executive Officer of Kornit Digital.

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