Aeroflex Holding Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Aeroflex Holding (NYS: ARX) fell nearly 18% in early trading today after guiding to much lower fiscal-first-quarter revenue and earnings. The stock remained down more than 16% as the closing bell approached.

So what: Fourth-quarter adjusted earnings were OK, coming in at $0.35 a share -- a penny better than the consensus estimate, Briefing.com reported. Revenue, meanwhile, rose only 4.7% to $198.7 million. Wall Street had been calling for $199.3 million.

Now what: As big as that miss was, it was guidance that sent investors packing. Aeroflex, which specializes in sensitive electronics, expects $160 million to $165 million in Q1 revenue and $0.09 to $0.11 per share in adjusted earnings. Analysts were expecting a more robust $0.19 on $175.03 million in revenue. No wonder investors were bailing out. Where do you stand on this stock? Would you use the sell-off as a buying opportunity? Weigh in using the comments box below.

Interested in more info on Aeroflex Holding?Add it to your watchlist.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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