Extreme Networks tumbles on dour Q3 forecast

Extreme Networks

31/01/2024 13:25

** Shares of cloud-networking company Extreme Networks
 EXTR.O  tumble 18.6% to $13.55 premarket 
    ** Stock set to hit lowest level in over 15 months if losses
hold 
    ** Co forecasts Q3 adj. EPS loss in the range of 17 cents to
22 cents, compared to LSEG estimates of a 28 cents profit
    ** Sees Q4 revenue in the range of $265 -$275 mln, below
estimates of $355.32 mln 
    ** Q2 adj. EPS of 24 cents/shr also misses Wall Street
estimates 
    ** Expect higher sell-through than sell-in in Q3 to impact
operating results; plan to take cost actions to drive recovery -
CFO Kevin Rhodes
    ** Stock fell 3.7% in 2023; down 5.7% YTD until the last
close

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))