Aeroflex Shares Got Crushed: What You Need to Know

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 (NYS: ARX) got crushed today, down by as much as 14%, after the company reported second-quarter earnings this morning.

So what: Revenue shrank to $171.1 million, while gross margin also contracted to 50.1%. Earnings per share came in at $0.15, with both top and bottom lines registering better-than-expected results.

Now what: The pessimism sank in after the company disclosed forward-looking guidance that left a lot to be desired. Third-quarter profit is forecast between $0.14 and $0.17 on sales of $167 million to $177 million, with even the top end of those respective ranges falling short of consensus. Full-year profit similarly was uninspiring, with the $0.73 to $0.79 per-share range well below the $1.09 per share that the market was looking for.

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

At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. 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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