Novatel Predicts Second-Quarter Sales Miss
Novatel Wireless
(NVTL)
disappointed Wall Street once again, offering a weak second-quarter outlook after its quarterly earnings Thursday.
The San Diego-based wireless broadband company said it earned $4.44 million, or 14 cents a share, in the first quarter, less than half of what it earned in the same period a year ago. Excluding items, Novatel said it had a profit of 17 cents a share. Revenue slid 16.8% from the first quarter a year earlier to $91.3 million.
Analysts expected earnings of 13 cents a share on revenue of $91 million, according to Thomson Financial.
On April 14, Novatel slashed its first-quarter revenue outlook to $91 million from its previous forecast of $110 million. Novatel said that $10 million of that decline was due to a product delay by a "major European carrier customer." At the time, the company said it expected adjusted earnings to fall in a range of 16 cents to 18 cents a share.
Looking ahead to the second quarter, Novatel said it expects earnings in a range of 13 cents to 16 cents a share on revenue of $85 million to $90 million. The low end of the profit outlook and the entire sales range would miss Wall Street's view of earnings of 16 cents a share on revenue of $98.8 million.
"We believe that the overall market is experiencing considerable growth and we remain intensely focused on accelerating development of our next-generation products, which we believe will position us with the best-in-class, highest performing products with the most differentiated features in the market," said CEO Peter Leparulo in a release.
Novatel's weak outlook provided a contrast to that of competitor
Sierra Wireless
(SWIR) - Get Report
, which
delivered a stronger-than-expected first-quarter earnings report
Tuesday.
After adding 2.5% during Thursday's session, Novatel was dropping nearly 10% in late trading to $8.30. Sierra Wireless added 2.4% Thursday and was off slightly in the after-hours session.
Among other wireless-product makers,
Nokia
(NOK) - Get Report
was up 1.4% and
Motorola
( MOT) was adding 1.1%, while
Ericsson
(ERIC) - Get Report
was down 1.3%.