Shares of Harmonic experienced a sharp decline on Monday as the company released its guidance for the first quarter, indicating a potential loss and a decrease in revenue. After-hours trading saw the stock drop by 11% to $10.34, following a 3.5% rise during Monday's regular trading hours. Overall, shares have fallen by 11% since the beginning of the year.
Harmonic, a video streaming and broadband solutions provider based in San Jose, California, expects to incur a loss of 4 to 12 cents per share in the first quarter. This differs significantly from the profit of 4 cents per share recorded during the same period last year. Analysts surveyed by FactSet predict that earnings will remain unchanged compared to the previous year on a per-share basis.
Furthermore, the company anticipates a decline in revenue for the first quarter, with projections ranging from $110 million to $130 million, compared to $157.6 million in the same period last year. Analysts surveyed by FactSet estimated first quarter revenue to be around $151 million.
In the fourth quarter, which ended on December 31, Harmonic reported a profit of $83.8 million, or 72 cents per share. This is notably higher than the $6.1 million, or 5 cents per share, recorded in the previous year's fourth quarter.
Previously, Harmonic had predicted a profit ranging from less than 1 cent to a loss of 2 cents per share. However, analysts had projected a profit of 4 cents per share.
Revenue for the fourth quarter increased from $164.3 million to $167.1 million compared to the same period the year before, surpassing analysts' forecast of $159 million according to FactSet data.
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