Analysts have downgraded the stock of Kenexa, a provider of talent management software, after the company announced that it is lowering its third-quarter and full-year outlook.
According to Forbes, their stock fell $5.43, or 24.5 percent, to $16.71 in morning trading.
For the year, Kenexa expects a profit of $1.43 to $1.46 per share, compared with the $1.52 to $1.55 it had previously forecast.
Analysts are speculating that Kenexa is losing market share to applicant tracking system Taleo, who in July reported strong second quarter revenues of $38.8 million, an increase of 25 percent year-over-year.
It appears Kenexa’s $115 million purchase of competitor BrassRing in 2006 has not given them a leg-up over Taleo, who also recently acquired a competitor, Vurv Technology, for $128.8 million.
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