Why Rofin-Sinar Technologies Plunged
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What: Shares of Rofin-Sinar Technologies (NAS: RSTI) have plunged today by as much as 16% after the company reported second-quarter earnings and a gloomy outlook.
So what: Revenue totaled $129.4 million, and earnings per share ended up at $0.28. Both fell slightly short of investors' hopes. Consensus estimates had called for $133.2 million in sales and $0.29 per share in profit. CEO Gunther Braun said the weak economic environment from last year has carried into the early part of 2012, hurting results.
Now what: Braun also said demand has begun to recover in the company's machine tool business, as well as in the medical device and solar sectors. Next quarter, sales are expected between $130 million and $135 million, with EPS between $0.27 and $0.30. Those forecasts fall far short of the $144 million in sales and EPS of $0.37 that the Street was looking for.
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Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Rofin-Sinar Technologies.Motley Fool newsletter serviceshave recommended buying shares of Rofin-Sinar Technologies. The Motley Fool has adisclosure policy.
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