What happened eGain Corporation's (NASDAQ: EGAN) stock sank today after the company reported its first-quarter results for the fiscal year 2021. The company's stock fell by as much as 32% today and was down 27.7% at the end of the trading day. So what eGain reported non-GAAP diluted earnings of $0.08 per share in the first quarter, which beat Wall Street's consensus estimate of $0.06 per share. The company also increased its revenue by 11% year over year, to $19.1 million. Image source: Getty Images. Despite surpassing analysts' consensus earnings estimate for the quarter, many investors dumped their eGain shares today, likely because the company's sales and earnings guidance for the second quarter were below Wall Street's expectations. eGain's management said that second-quarter non-GAAP diluted earnings per share will be break-even, at the midpoint of guidance, compared to Wall Street's consensus estimate of $0.04 per share. Investors also weren't happy that the company's management guided second-quarter revenue of $18.4 million, at the midpoint, compared to analysts' consensus estimate of $19.6 million. Even with today's share price drop, eGain's stock is still up 54.7% year to date. Now what eGain's huge share price drop today seems to be a bit of an overreaction by investors. Even if investors aren't happy with the company's second-quarter guidance, it's hard to fathom why that would merit a 27.7% share price drop in just one day. All of which means that investors may want to be cautious with this stock right now. 10 stocks we like better than eGain CommunicationsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and eGain Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source