Disk drive suspension assembly maker
missed third-quarter estimates and trimmed fourth-quarter guidance, sending its shares down 13%.
The Hutchinson, Minn., company earned $19.6 million, or 65 cents a share, in the quarter ended June 26. That's down from the year-ago $40.3 million, or $1.30 a share. Excluding tax benefits in both quarters, earnings rose to 56 cents a share from 16 cents a year ago, missing the 63-cent Thomson First Call analyst consensus estimate.
Revenue rose to $170 million from $100 million, as demand for suspension assemblies remained strong in the third quarter. But the company said capacity constraints resulted in shipments below the company's initial expectations. The "demand-capacity mismatch was greatest late in the third quarter because of product mix issues," Hutchinson said, adding that it is "working to correct the mismatch and expects to resolve it in the fourth quarter. In addition, while the company was capacity constrained on certain products in the third quarter, it was also able to build inventory on other customer programs."
But the company guided toward fourth-quarter earnings of around 60 cents a share on revenue of $172 million or so. Analysts were looking for 70 cents on $193 million.
In late action Thursday, shares of Hutchinson fell $4.80 to $33.10.