EXTR - Why Extreme Networks Stock Fell 13% Today
2023-11-01 17:37:24 ET
Shares of Extreme Networks (NASDAQ: EXTR) had a bad day on Wednesday. The maker of cloud-based networking solutions posted robust results for the first quarter of fiscal year 2024, ended Sept. 30, but with next-quarter guidance far below Wall Street's consensus views. Extreme's stock fell as much as 20.5% on the news, closing Wednesday's trading at a 13.4% loss.
Extreme's first-quarter sales rose 19% year over year, landing at $353 million. Your average analyst would have settled for roughly $347 million. On the bottom line, adjusted earnings stopped at $0.35 per diluted share -- up from $0.20 per share in the year-ago period. Here, the analyst consensus stood at $0.32 per share. So far, so good.
However, the forward-looking part of the report was not so rosy. The Street consensus pointed to earnings near $0.37 per share on revenue in the neighborhood of $368 million in the second quarter. The midpoints of management's official target ranges were just $0.29 per share and $320 million, respectively.
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Why Extreme Networks Stock Fell 13% Today