Mellanox Shares Plunge on Weak Guidance
NEW YORK (TheStreet) -- Mellanox (MLNX) shares went into freefall after the company's third-quarter results, released after market close, plunging more than 23% on weaker-than-expected guidance.
The server and storage specialist reported revenue of $156.5 million, a massive hike from $68.2 million in the same period last year, and comfortably above analysts' forecast of $153.1 million.
Excluding items, Mellanox earned $1.37 a share, up from 34 cents a share in the same period last year. Analysts were looking for earnings of $1.13 a share.
For the fourth quarter, however, Mellanox expects revenue between $145 and $150 million, well below the consensus estimate of $157 million.
Mellanox, which competes with Broadcom (BRCM), Emulex (ELX) and QLogic (QLGC), predicts a slowdown in large deals during the fourth quarter. The guidance pushed shares of Mellanox down 23.04% to $75.54 in extended trading. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: tips@thestreet.com.Select the service that is right for you!
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