Updated from 2:07 p.m. EST with new stock prices
Small-cap stocks fell hard Thursday, making the major indices' losses look mild by comparison. The Russell 2000 shed 3% to 773.52.
Lowered guidance hurt several companies on the down day. Shares of Fremont, Calif.-based Avanex (AVNX), which makes fiber-optic products, took a 28.9% hit to 97 cents as the company announced that revenue for its fiscal second-quarter would be between $51 million and $53 million, which falls below the low end of previous guidance of $56 million to $58 million. Avanex is filing an arbitration complaint against French optical modules maker 3S Photonics for prematurely ending its exclusive distribution agreement with the company.
Shares of Sterling Financial (STSA - Get Report), meanwhile, slipped 10.9% to $17.44 on lowered fourth-quarter guidance. Thanks to an increased charge for credit costs, the Spokane, Wash., bank now expects fourth-quarter EPS of 31 cents to 34 cents and full-year EPS of $1.84 to $1.87. Analysts polled by Thomson Financial forecast income of 53 cents a share for the quarter and $2.09 for the year.