Shares of Ellie Mae plummeted 22% in premarket Friday, after the provider of software services for the mortgage finance industry reported second-quarter earnings that missed expectations and slashed its full-year outlook. The stock was on track to suffer the biggest one-day percentage decline since it went public in April 2011. The company reported late Thursday a net profit of $18.8 million, or 52 cents a share, up from $10.6 million, or 34 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 51 cents a share. Revenue rose to $104.1 million from $90.1 million. The FactSet consensus for EPS was 53 cents and for revenue was $110.7 million. The company cut its 2017 adjusted EPS outlook to $1.47 to $1.50 from $1.79 to $1.92 and its revenue outlook to $400 million from $405 million from $433 million from $440 million. "The mortgage market is in the process of transitioning from a refi centric one to a purchase driven one," said Chief Executive Jonathan Corr. "Some of our customers experienced closed loan volume lower than we expected in the second quarter as they dealt with declining refi volume, while the tight housing inventory held back purchase volume." The stock had run up 31% year to date through Thursday, while the SPDR Real Estate Select Sector ETF had gained 6.2% and the S&P 500 had climbed 11%.
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