Calix (NYSE: CALX) is the latest telecom vendor to issue a second-quarter outlook that fails to meet analyst forecasts.
The vendor, which provides last mile access gear to a host of large Tier 1 service providers including CenturyLink (NYSE: CTL) and Frontier (Nasdaq: FTR), estimated adjusted earnings of 4 cents per share on $79 million in revenue for Q2 2012. Initially, it had forecast adjusted earnings of 7 cents to 11 cents per share on revenue of $93 to $97 million.
Wall Street did not like this news, with its shares dropping almost 26 percent after the markets closed on Wednesday following the announcement of its outlook.
According to a Thomson Reuters I/B/E/S poll, financial analysts expected 10 cents a share on revenue of $95.1 million.
The revised estimates for the second quarter reflect softness in demand across multiple customer markets due to a slowdown in capital expenditures by service providers, said Calix in a prepared statement.
Despite the disappointing outlook, Carl Russo, president and CEO of Calix, said "we are encouraged by the progress we are making in building our international business which saw a sequential increase in shipments and by a relatively strong month in June for bookings for domestic customers."
Calix, of course, is not alone.
Fellow vendors Acme Packet (Nasdaq: APKT) and ADTRAN (Nasdaq: ADTN) are also feeling the pain going into the second quarter financial reporting season. ADTRAN reported weaker Q2 2012 sales, while Acme Packet issued a lower-than-expected Q2 forecast. Like Calix, these vendors are also seeing the effects of delayed equipment orders and economic issues in both the U.S. and in Europe.
The vendor's shares were trading at $5.07, down $1.41, or 21.76 percent, in late afternoon trading Thursday on the New York Stock Exchange.
For more:
- Reuters has this article
- here are the company's preliminary results
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