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.
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