While earnings came in line with estimations, revenues missed Street analysts' expectations of $186.13 million.
During the conference call, Riverbed guided second quarter earnings of 21 – 22 cents a share and revenues $193 – $197 million. This is lower than the Street's prediction of 24 cents a share and revenues of $202.04 million.
The company hopes to gain from its new Steelhead, Cascade and Granite products, along with Whitewater and Stingray. Management believes the roster offers growth prospects and believes it enjoys a competitive edge in a growing market. Yet, these comments were unable to arrest the fall in share price.
Significantly, 21 analysts have a Strong Buy or Buy rating on Riverbed shares, while 14 see it as a Hold, and one advises clients to Sell. For the 32 brokerages covering RVBD, the highest and lowest price targets for the company stock are $38.00 and $17.25 respectively.
Shares of the company reached 52-week high of $41.83 and a low of $18.33. The stock closed Thursday's regular trading at $27.86 gaining $1.05 or 3.92 percent. Today, however, shares of the company have plummeted by more than 25%.
After its first quarter results and downbeat forecast, Cepheid is the third company to join the list of free-fallers. The company suffered a net loss of $5.5 million or 8 cents loss a share in the first quarter versus profit of $0.5 million or one cent a share in the year-ago quarter. On an adjusted basis, the latest quarter loss was $1.2 million or two cents loss a share compared to profit of $5.4 million or 8 cents a share in the year earlier quarter.
Revenues increased 28 percent to $77.3 million from $60.2 million in the previous year quarter. While the loss is in line with expectations, revenues were marginally lower than analysts' estimates of $77.41 million.
As if these were not enough, Cepheid delivered another blow to investors' sentiments. The company has cut down its adjusted earnings forecast for 2012 to 50 – 55 cents a share from earlier guidance of 55 -60 cents a share but kept its revenue outlook between $333 and $347 million. Similarly, GAAP earnings forecast have been slashed to 12 – 17 cents a share from 17 – 24 cents a share. This is lower than analysts' predictions of 24 cents a share and revenues of $342.04 million.
After CPHD's fourth quarter results, the stock gained traction and investors were expecting much better news from the company. However, their optimism was fully shattered to the contrary by its latest results and outlook. Twelve analysts might rethink their Strong Buy or Buy ratings for Cepheid shares, whereas five analysts recommend a Hold. None of the analysts sees it as a Sell.
During the 52-week period, shares of the company reached a high of $45.00 and a low of $29.53. The stock closed Thursday's regular trading at $40.58 advancing 68 cents or 1.70 percent with the hope of positive news. However, after the results, shares of Cepheid have dropped as much as $2.54.