Why Calix stock plunged 5% on Tuesday
Investors didn’t like the guidance the company gave in its latest earnings report.
Broadband Communications Specialist calix (good night -5.18%) Perhaps investors felt they were holding on to stocks on Tuesday. The company reported its first quarter results, and while there were plenty of developments to like, investors weren’t cheering what management saw in their crystal ball. As a result, on days when the stock price fell, the stock price fell by more than 5%. S&P 500 The index rose 1.2% and was in positive territory.
A pair of quarterly declines
Calix’s first quarter results showed a decline in the company’s profits. It fell nearly 10% over the period to just over $226 million. Taken together, this missed the average analyst estimate of $228 million.
Bottom line, Calix has seen a more pronounced decline in non-GAAP (adjusted) net income. This was $14.4 million, well below the nearly $21.5 million recorded in the same quarter last year. But on the bright side, the $0.21 per share narrowly beat the consensus analyst estimate of $0.20.
CEO Michael Weening and CFO Cory Sindelar said in a letter to shareholders that revenue and profitability were down due to factors including mid- to large-sized customers pausing purchases while they “reevaluate and make decisions on near-term purchases.”
Second quarter guidance falls short of consensus
Additionally, Calix provided guidance that was below forecasters’ expectations. For the second quarter, the company expects to report revenue of $197 million to $203 million and earnings of $0.03 to $0.09 per share.
Eric Volkman has no positions 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.
