NEW YORK (TheStreet) -- Shares of ARRIS Group (ARRS) - Get Free Report were falling 5% to $28.25 on Thursday after the telecommunications equipment maker guided below analysts' estimates for the fourth quarter and reported mixed results for the third quarter.
On Wednesday, ARRIS said it expects to report earnings of 40 cents to 45 cents a share and revenue of $1.1 billion to $1.15 billion for the fourth quarter. Analysts expect the company to report earnings of 60 cents a share and revenue of $1.26 billion for the quarter.
For the third quarter, ARRIS reported earnings of 56 cents a share, in line with analysts' estimates. The company said revenue fell 13.5% year over year to $1.22 billion in the quarter, missing analysts' estimates of $1.24 billion.
CEO Bob Stanzione noted that the company continues to "headwinds, in particular, those related to telco capex, industry consolidations and the strong U.S. dollar."
About 6 million shares of ARRIS were traded by 2:53 p.m. Thursday, above the company's average trading volume of about 1.4 million shares a day.
TheStreet Ratings team rates ARRIS GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate ARRIS GROUP INC (ARRS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: ARRS
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