Small-cap stocks were mostly crawling beneath the sinking major indices Wednesday amidst disappointing earnings from a variety of sectors.
Veraz Networks (VRAZ) shares plunged more than 40% after the communication-equipment maker sharply missed Wall Street expectations for the third quarter. The San Jose, Calif., company swung to a profit of $332,000, or a penny a share, from a steep year-ago loss, but analysts were looking for 2 cents more. Jefferies downgraded the stock to hold from buy. Shares were off $3.28 to $4.84.
Also in the tech sector, Imergent (IIG) sank 19.1% to $17.80 after the purveyor of e-commerce technology posted a fiscal first-quarter loss of $800,000, or 7 cents a share. Last year the Orem, Utah, company delivered a profit of 18 cents a share.
Construction company MasTec (MTZ - Get Report), meanwhile, took a 25.9% nose dive after pro forma income dropped 18.2% from last year to 18 cents a share, missing targets by a penny. On a GAAP basis, it swung to a continuing-operations loss of 40 cents a share thanks in large part to expensive settlements on "various legacy legal claims, cases and other disputes." Shares of the Coral Gables, Fla., company were losing $3.66 to $10.46.And Georgia's Carmike Cinemas (CKEC - Get Report) tumbled 19.7% on a wide miss. The movie theater operator posted a profit of $2 million, or 16 cents a share, against a year-ago loss, but analysts were seeking a profit of 37 cents a share. Revenue, at $135.3 million, was also below par despite representing a gain over last year. Shares were changing hands at $3.02.