National Instruments Corp. (NATI) Tuesday slashed its outlook for the fourth quarter due to reduced demand for its measurement and automation products in crisis hit Europe. Following the announcement, the company's shares lost percent in extended session on the Nasdaq.
National Instruments now expect fourth-quarter earnings of $0.19 to $0.20 per share, and non-GAAP earnings of $0.26 to $0.27 per share. It now expects revenues for the period of $277 million and non-GAAP revenues of $279 million.
Street analysts currently anticipate earnings of $0.27 per share for the quarter, on revenues of $292.37 million.
Earlier, NI forecast fourth-quarter earnings of $0.22 to $0.30 per share and non-GAAP earnings of $0.29 to $0.37 per share. Revenues were previously forecast in the range of $280 million to $300 million, and non-GAAP revenues of $282 million to $302 million.
Sequentially, NI saw the greatest reduction in year-over-year revenue growth in Europe, where the revenue growth in US dollars dropped from 25 percent year-over-year in third quarter to 3 percent in the fourth quarter.
CEO James Truchard said, "Going forward, we will be very disciplined in managing our expenses, while ensuring we continue to serve the growing industries that are fundamental to the needs of society such as energy, medical, communications, and academic."
"In light of the uncertain outlook for the industrial economy, especially in Europe, we plan to leverage the strategic R&D and field sales investments we have already made, while managing expenses carefully as we start out 2012," said Chief Operating Officer Alex Davern. "
NATI closed Tuesday's trade at $26.37, up $0.42 or 1.62%, on the Nasdaq. In after hours, the stock dropped 6.07%.
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