Why Silicom Shares Plunged

Why Silicom 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 Silicom plunged today by as much as 12% after the company reported earnings.

So what: Revenue in the quarter added up to $15.7 million, with non-GAAP earnings per share of $0.48. Both figures topped consensus estimates of $15.5 million in sales and $0.40 per share in adjusted profit, but still weren't enough for investors.

Now what: The company said it scored two major deals, one with an existing customer and another with a new customer. The deals weren't enough to impress investors, though. Maxim Group downgraded its rating on Silicom from "buy" to "hold" following the results, but it was defended at Zacks.

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The article Why Silicom Shares Plunged originally appeared on Fool.com.

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Originally published