Extreme Networks (EXTR): Small Acquisition Should Contribute to Earnings in 2H17 - Needham
- Wall St. lower as earnings from some big names disappoint
- Unusual 11 Mid-Day Movers 10/25: (CWEI) (NXTD) (EYES) Higher; (DPRX) (CRBP) (CALA) Lower (more...)
- General Motors (GM) Tops Q3 EPS by 28c
- Procter & Gamble (PG) Tops Q1 EPS by 5c
- DuPont (DD) Tops Q3 EPS by 14c; Boosts FY16 EPS Outlook; Says Continuing to Work with Regulators
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Needham & Company Buy Extreme Networks (NASDAQ: EXTR) price target of $4.75 (from $4.30) after the company bought Zebra’s wireless business. The transaction should close in CY4Q and based on the change-over from sell-in to sell-out accounting in the channel, it will likely show up in revenues for half of CY4Q.
Zebra was losing money in this business but EXTR is not taking all of the overhead and other costs. EXTR expects the unit to be solidly profitable as configured under the deal metrics. GMs are expected to be in the 45-48% range, at least initially. Wireless now accounts for 30% of revenues and should help drive higher growth rates.
Shares of Extreme Networks closed at $4.23 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Needham & Company Raises Price Target on II-VI, Inc. (IIVI) Following 1Q Beat
- UBS Raises Price Target on Zions Bancorp (ZION) to $29 Following 3Q EPS Beat
- Drexel Hamilton Reiterates Sell on Corning (GLW) Following Solid 3Q
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesNeedham & Company, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!