Business Corpus: Smart Home Tech Provider Control4 Tumbles On Slowing GrowthControl4 stock fell hard Friday after the smart home tech provider guided Q4 sales below analysts views. It was Control4's third straight quarter of slowing sales growth. The post Smart Home Tech Provider Control4 Tumbles On Slowing Growth appeared first on Investor's Business Daily.

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Smart home technology provider Control4 (CTRL) beat Wall Street's expectations for the third quarter, but guided to sales below views for the current quarter. Control4 stock fell hard on the news.

The stock tumbled 16.9% to close at 23.92 on the stock market today. It is currently No. 35 on the IBD 50 list of top-performing growth stocks.

The Salt Lake City-based company late Thursday said it earned 38 cents a share on sales of $71.6 million in the third quarter. On a year-over-year basis, earnings per share rose 9% while sales climbed 11%. It was the second straight quarter of decelerating earnings growth and third quarter in a row of slowing sales growth.

Analysts expected Control4 to earn 36 cents a share on sales of $71.5 million.

For the fourth quarter, the company guided to earnings per share of 43 cents on sales of $73 million. Wall Street was modeling 43 cents in earnings per share and $74.9 million in sales. If Control4 meets its targets, earnings per share would rise 8% year over year and sales would increase 7% in December. That would mark another quarter of decelerating sales and earnings growth.

Control4 Stock Breaks Two-Year Streak

Dougherty analyst Steven Frankel reiterated his neutral rating on Control4 stock.

Control4 shares will be under pressure until the company returns to double-digit revenue growth on a quarterly basis, he said in a report. Also, profit margin expansion is likely to be limited for the next couple of quarters, he said.

Needham analyst Richard Valera kept his buy rating on Control4 stock, but trimmed his price target to 32 from 33.

While Control4 delivered solid third-quarter results, it broke its more than two-year string of beat-and-raise performances with a modest guide down for the fourth quarter, he said.

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