Rackable Racked Up Again

Rackable Systems (RACK Quote - Cramer on RACK - Stock Picks) plunged 19% Friday after the network-storage company guided below Wall Street's consensus for 2007.

The Milpitas, Calif., company's latest pratfall came just two weeks after Rackable warned of a weaker-than-expected fourth quarter. Shares lost a third of their value back on Jan. 17, following Rackable's admission that its revenue would fall a dime short of analysts' estimates.

On Thursday, Rackable beat lowered guidance for the fourth quarter, saying it made 19 cents a share on revenue of $107 million.

But the company said it expects to make between 75 cents and $1.05 a share on an adjusted basis for the year, on revenue of $450 million to $525 million. Analysts were looking for a profit of $1.02 a share on revenue of $490 million.

On Friday, shares fell $3.86 to $16.48.