sagged Thursday morning after the telecom supplier missed third-quarter estimates and reduced fourth-quarter sales guidance.
The Orland Park, Ill., company cited a steep decline at its satellite communications business, where sales fell 65% from a year ago to $22 million. Wireless infrastructure sales rose 8% to $465 million.
For the second quarter ended June 30, Andrew made $13 million, or 8 cents a share, down from the year-ago $17 million, or 11 cents a share. Revenue fell 1% to $487 million.
Wall Street was looking for an 8-cent profit on sales of $502 million.
For the fourth quarter, Andrew guided toward sales of around $485 million, well below the $528 million Thomson First Call estimate. The company expects modest growth in wireless infrastructure and relatively flat sales of satellite communications, partially offset by lower sales of the company's geolocation product line.
Andrew also expects its gross margin to decrease, mainly because of higher raw-material costs, lower sales of geolocation, a less favorable product mix and an increase in component costs from China relating to the revaluation of the Chinese yuan. The company said those factors would be partially offset by an initial benefit from the recent price increase on Heliax cable products and cost-reduction activities in the constructions services business.
Early Thursday, Andrew fell $2.64 to $11.29.