Why Aruba Networks Shares Got Hammered
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 Aruba Networks got hammered today, down by as much as 24% after the company announced preliminary results.
So what: Revenue in the third quarter is now expected in the range of $144 million to $147 million, down from its prior guidance of $159 million to $161 million. Non-GAAP earnings per share should be $0.11 to $0.12, also well short of its prior forecast of $0.20 per share. The company blamed customers pushing out orders.
Now what: CEO Dominic Orr said that customers across the Americas, Europe, and Asia all pushed out order activity, and Aruba believes the weakness is being caused by challenging economic conditions globally. Orr expressed disappointment in the figures. The Street had been expecting $160.5 million in sales and $0.20 per share in adjusted profit. William Blair analyst Jason Ader defended Aruba, saying the deals haven't been lost.
Interested in more info on Aruba Networks? Add it to your watchlist by clicking here.
The article Why Aruba Networks Shares Got Hammered originally appeared on Fool.com.Fool contributor Evan Niu, CFA, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.