Limelight Networks: Slides 21% after cutting annual profit view

Edgio

23/10/2020 13:41

** Digital content delivery firm's shares  LLNW.O  slide 21%
to $4.87 premarket after FY earnings forecast cut
    ** Co now sees FY adj. loss of 3-13 cents vs previous
forecast of break-even to adj. loss of 10 cents  urn:newsml:reuters.com:*:nBw4XRv8Ca
    ** Maintains 2020 rev forecast at $230 mln-$240 mln 
    ** Cowen analysts view the forecast as "conservative" as it
implies a decline in Q4 rev Q/Q in what is typically a
seasonally strong quarter
    ** "With the stock down ~20% in after-market trading, we
would be buyers on weakness," they write 
    ** Craig Hallum downgrades to "hold" from "buy", finds
underlying margin dynamics troubling, concerned about ability to
post the growth it needs to find shares attractive
    ** Avg. rating on the stock is "buy"; median PT $9
    ** Co reports Q3 adj. loss of 1 cent on rev of $59.2 mln vs
estimate of adj. EPS of 2 cents on rev of $58.9 mln, as per
Refinitiv data
    ** Stock up 51% YTD 

 (Reporting by Sruthi Shankar in Bengaluru)
 ((sruthi.shankar@thomsonreuters.com;))