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Market/Sector Trends
11/20/2009 11:51 AM ET
(RTTNews) -
After moving higher earlier this month, networking stocks are continuing to give back some ground during trading on Friday. Disappointing earnings and guidance from ADC Telecommunications (ADCT) have contributed to the selling pressure.
The weakness in the sector is reflected by the 2.1 percent loss currently being shown by the NYSE Arca Networking Index. With the loss, the index is pulling further away from last month's sixteen-month closing high.
ADC Telecommunications reported a fourth quarter net loss of $0.20 per share, wider than the loss of $0.05 per share in the year-ago quarter, while revenues came in at $183.9 million. Analysts had expected the firm to earn $0.04 for the quarter on revenues of $170 million.
Looking ahead to the first quarter of fiscal 2010, ADC Telecom expects a loss per share in the range of $0.15 to $0.05 on net sales in the range of $250 million to $275 million. Analysts had been expecting a first-quarter profit of $0.11 per share on revenue of $274 million.
The stock has plunged by 13 percent following the quarterly report, setting a seven-month intraday low.
F5 Networks Inc. (FFIV) is also retreating following a downgrade by Auriga U.S.A, which lowered its rating on the stock to Hold from Buy. The stock is currently down by 3.3 percent, backing further off the more than nine-year closing high set earlier this week.
Adtran Inc. (ADTN) and Tellabs Inc. (TLAB) are also under some selling pressure, recording losses of 3.7 percent and 1 percent, respectively. Adtran dropped to a four-month intraday low earlier in the session, while Tellabs has set a three and a half month low.
by RTT Staff Writer
For comments and feedback: contact editorial@rttnews.com
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