The company anticipates adjusted earnings per share between 37 and 45 cents for the third quarter, trailing the 46-cent consensus projection tracked by FactSet. Revenue guidance remains relatively flat, forecasted at $301 million to $307 million, barely meeting the analyst estimate of $301.7 million. Management indicated that while they plan to implement surcharges to mitigate the impact of hardware costs, the expense of memory components remains a persistent drag on the bottom line.
In section Market Quotes
Calix Shares Tumble on Weak Third-Quarter Profit Guidance
A 14% drop in after-hours trading greeted Calix investors Monday evening after the technology firm issued a third-quarter profit outlook that fell short of Wall Street expectations. The company cited rising costs for memory components as the primary headwind threatening to compress its margins in the coming months.
This soft outlook contrasts with the firm's second-quarter performance, where the company swung to a $17.1 million profit from a near-break-even position a year prior. During that period, Calix outperformed expectations with adjusted earnings of 47 cents per share and revenue growth of 21%. Despite those gains, investors reacted sharply to the new forecast, extending a year-to-date decline that has seen the stock price shed 28% of its value.
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