Why Infoblox (BLOX) is Being Decimated in Pre-Market Trading

NEW YORK (TheStreet) -- It's looking like a rough day for Infoblox (BLOX) as several analysts downgrade the network services provider after management cut 2014 guidance.

In pre-market trading, shares have taken off 42.7% to $18.98.

Sterne Agee downgraded the stock to "neutral" with a $20 price target, while Needham & Company cut it to "hold" from "buy."

At Wedbush Securities, shares were downgraded to "neutral" from "outperform" with a $25 price target. The investment firm said the company is seeing a material deceleration in growth and the timeline for a recovery is uncertain.

After the bell Monday, Infoblox warned that revenue for the full year ending July would miss initial guidance. Management forecasts sales of $250 million to $254 million, below guidance of $270 million to $276 million and Thomson Reuters consensus of $274.52 million.

Full-year net income of 30 cents to 34 cents a share is far lower than analyst expectations of 52 cents a share.

Must Read: Why Infoblox (BLOX) Cut 2014 Guidance

TheStreet Ratings team rates INFOBLOX INC as a Sell with a ratings score of D+. The team has this to say about their recommendation:

"We rate INFOBLOX INC (BLOX) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time."

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