Why Aeroflex Shares Crashed

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What: Shares of microelectronic component maker Aeroflex Holding (NYS: ARX) have crashed today by as much as 26% after the company reported weak third-quarter earnings and soft guidance.

So what: Revenue decreased 16% to $162.3 million, below the $173.3 million that investors were expecting. Adjusted earnings per share was just $0.08, half of the $0.16 that analysts were calling for. On a GAAP basis, the company posted a net loss of $0.77 per share.


Now what: Most of that net loss was attributed to a $59.7 million impairment of goodwill and intangibles in its RFMW group. CEO Len Borow conceded that management was disappointed with the results. Next quarter, Aeroflex is guiding revenue of $180 million-$195 million, with adjusted earnings per share of $0.20-$0.27. In contrast, analysts were expecting $201.6 million in sales and $0.32 per share in profit.

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

At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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