Why Infoblox (BLOX) Plummeted to a One-Year Low Today

NEW YORK (TheStreet) -- Infoblox  (BLOX) plummeted approximately 40% to a one-year low of $12.40 on Friday after the tech company issued weak guidance and announced the departure of CEO Robert Thomas.

The company said in its third-quarter report it expects earnings per share of break even to 2 cents on revenue of $60 million to $61 million. Analysts expected 6 cents a share on revenue of $66.6 million. For the full year, Infoblox expects EPS of 30 cents to 32 cents on revenue of $245 million to $246 million, while the consensus estimate calls for EPS of 33 cents on revenue of $252.6 million.

For the third quarter, EPS was 7 cents, and revenue rose 5%, year over year to $61 million. This compares to analysts' expectations of 3 cents a share and revenue of $61.6 million.

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Thomas has served as Infoblox CEO since 2004. The company announced he would step down once it finds a successor.

Separately, TheStreet Ratings team rates INFOBLOX INC as a "sell" with a ratings score of D. TheStreet Ratings 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. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself."

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