Why Novatel Wireless (NVTL) Is Plummeting Today

NEW YORK (TheStreet) -- Novatel Wireless (NVTL) was plummeting 24.2% to $2.16 after missing analysts' estimates for earnings and revenue in the fourth quarter and posting a first-quarter guidance that falls below estimates.

For the fourth quarter Novatel posted a loss of 16 cents a share, missing analysts' estimates of a loss of8 cents a share by 8 cents. Revenue fell 7.6% from the year-ago quarter to $65.33 million. Analysts surveyed by Thomson Reuters expected revenue of $73.51 million.

Looking to the first quarter of 2014, the company expects revenue of between $50 million and $54 million, while analysts expect $75 million in revenue for the quarter. The company expects a loss of between 22 cents a share and 15 cents a share, compared to analysts' estimates of a loss of 7 cents a share for the quarter.

Must read: Warren Buffett's 10 Favorite Dividend Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates NOVATEL WIRELESS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate NOVATEL WIRELESS INC (NVTL) a SELL. This is driven by multiple weaknesses, 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. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and poor profit margins."

If you liked this article you might like

5 Stocks Insiders Love Right Now

3 Stocks Moving The Telecommunications Industry Upward

4 Under-$10 Stocks Making Big Moves

3 Under-$10 Stocks to Trade for Breakouts

4 Stocks Under $10 Moving Higher