Why Emulex Shares Plunged
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 Emulex plunged today by as much as 10%, after the company reported earnings.
So what: Revenue in the quarter was $122.1 million, down 5% from the prior year, which was slightly ahead of analyst forecasts. Non-GAAP earnings per share came in at $0.19, which was a penny shy of consensus estimates.
Now what: During the quarter, Emulex said it would acquire Endace Limited. Outlook for the current quarter disappointed investors, though, with revenue expected in the range of $110 million to $114 million. Adjusted earnings per share should be $0.12 to $0.14. Analysts thought $117.5 million in sales, and a $0.16 per share profit, was in order.
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The article Why Emulex Shares Plunged originally appeared on Fool.com.Fool contributor Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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