CRNT - Why Ceragon Networks Stock Fell 11.4% This Morning
Shares of Ceragon Networks (NASDAQ: CRNT) dove as much as 11.4% lower in Monday's early trading. Market makers shrugged off the company's solid third-quarter results to focus on disappointing guidance targets for the fourth quarter instead.
In the third quarter of 2021, Ceragon's revenue rose 8% year over year to $76.1 million. Adjusted earnings stopped at $0.02 per diluted share, down from $0.03 per share in the year-ago period. Your average analyst had been looking for a break-even bottom-line reading on sales near $73.3 million.
Ceragon provided financial guidance for the last report of the 2021 fiscal year. The revenue target was unchanged from the second-quarter report's outlook, pointing to annual sales of roughly $290 million. That works out to a fourth-quarter target in the neighborhood of $71.6 million, compared with the current analyst view of approximately $77.4 million. On the bottom line, Ceragon's management expects a break-even total in the second half, which adds up to a net loss of roughly $0.03 per share in the fourth quarter. Here, the Street was expecting a net profit of the same size.
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Why Ceragon Networks Stock Fell 11.4% This Morning