The Appen Ltd (ASX: APX) share price took off in early trade on Thursday before tumbling into the red after the company posted its earnings for the first half.
As The Motley Fool Australia reported earlier, the provider of data for machine learning and artificial intelligence posted an after-tax loss of US$9.4 million for the six months ended 30 June. Thatâs down from the prior corresponding periodâs US$6.7 million profit.
While the loss didn’t initially deter the market, it has since performed an about-face. The Appen share price opened 0.7% higher at $4.20 before taking off to reach a high of $4.565 â representing a 9.5% gain.
Since then, the stock has slumped to swap hands at $4.14 apiece, 0.7% lower than its previous close.
Letâs take a closer look at the latest news from the former S&P/ASX 200 Index (ASX: XJO) constituent.
Appen share price wobbles on first-half earnings
The Appen share price surged higher before nosediving after the company posted apparently disappointing first-half earnings.
Notably, the tech stock scrapped its interim dividend as its after-tax profit hit the red.
But there were a few silver linings within todayâs release.
The company noted that, while trading hasnât yet improved in the second half, its revenue order book, including year-to-date revenue and orders in hand, stands at US$360 million with deliveries skewed to the final quarter.
It also saw growth in its China business, with its revenue rising 141%.
However, looking at the company as a whole, revenue was down about 7% to US$182.9 million and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) before foreign exchange impacts slipped 66% to a $9.6 million loss last half.
Todayâs share price movement sees Appen trading 5% higher than the multi-year low of $3.94 it reached earlier this month. Though, itâs still down 63% year to date and 70% over the past 12 months.
The post Appen share price rockets then stalls on US$9m half-year loss appeared first on The Motley Fool Australia.
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More reading
- Appen share price on watch as interim dividend scrapped
- Earnings preview: Here are the ASX shares reporting today
- The Appen share price is down 20% in a month. Is it going lower?
- Why A2 Milk, Appen, Boral, and REA shares are dropping today
- Why Appen, Imugene, OZ Minerals, and Paradigm shares are charging higher
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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