Extreme Networks shares fall after dour revenue forecast

Extreme Networks

09/01/2024 16:51

** Shares of Extreme Networks Inc  EXTR.O  fall 8% to $16.10
on Tues after the cloud networking provider lowered its estimate
for second quarter revenues
  ** Stock, which fell as low as $15.31, its lowest level since
April, was is on track for the biggest pct decline since Nov
2023
  ** EXTR said late Monday it now expects Q2 revenues to between
$294 mln to $297 mln, down from a prior outlook of $312 mln to
$327 mln
  ** EXTR's Q2 outlook "reflects industry headwinds of channel
digestion and elongated sales cycles," CEO Ed Meyercord said in
a statmenent and that in late Q2 "saw multiple large deals
pushing out to future quarters"
  ** Co's earnings call is set for Jan. 31. 
  ** RosenBlatt Securities cut their PT for EXTR to $19 from $24
following the announcement 
  ** Median PT of 8 analysts covering EXTR is $19, down from $22
a month ago, 4 recommendationd are to "buy" the stock and 4
ratings are "hold", per LSEG data

 (Reporting by Chibuike Oguh in New York)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))