NEW YORK (TheStreet) -- Extreme Networks
(EXTR - Get Report) stock is tanking 16.3% to $4.46 on Wednesday after the company missed third-quarter estimates and issued guidance below consensus.
Over the three months to March, the network equipment maker reported net income of 2 cents a share, inline with analysts' estimates and revenue of $141.76 million, below $145.8 million expected by analysts surveyed by Thomson Reuters.
For its fourth quarter, management anticipates revenue between $145 million and $150 million and net income of 2 cents to 4 cents a share. Guidance fell below analysts' estimates of $158.4 million in sales and 7 cents a share in profits.
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TheStreet Ratings team rates EXTREME NETWORKS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXTREME NETWORKS INC (EXTR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
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