Investors like stock splits because they typically follow sizable and sustained share-price appreciation, which is often a hallmark of competitively advantaged businesses. Indeed, stocks that split since 1980 have beat the S&P 500 (SNPINDEX: ^GSPC) by an average of 13 percentage points in the year following the stock-split announcement.

The company’s reported adjusted earnings before interest, taxes, depreciation, and amortization of $17.9 million for the quarter, a 29% decline from last year and below Wall Street’s call for $19.4 million. Adjusted Ebitda margin fell to 21% from 29% a year ago.

Wall Street’s record-setting rally is due for a reality check, according to the latest report from Stifel’s Barry Bannister and Thomas Carroll.