The company now expects earnings of 6 cents to 8 cents a share for the fourth quarter, up from its previous guidance of 2 cents to 4 cents a share. The Capital IQ Consensus Estimate calls for 3 cents a share. Extreme Networks now expects revenue of $154 million to $156 million, up from $145 million to $150 million for the quarter. Analysts expect revenue of $145.73 million for the quarter.
"I am pleased with the strong results that the team at Extreme delivered to close out our first year as a combined company," president and CEO Charles Berger said in a press release. " We saw better than expected results in North America, driven by several NFL stadium wins, as well as full year and quarter over quarter growth in the EMEA region. Our integration remains ahead of plan as we continue to execute against key Company operational and financial milestones, including successfully completing our ERP integration in early July, two months ahead of schedule."
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TheStreet Ratings team rates EXTREME NETWORKS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXTREME NETWORKS INC (EXTR) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."