Aruba Networks (ARUN) Blasted on Q3 Warnings, But Deals Still There Says Analyst
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of Aruba Networks (NASDAQ: ARUN) are getting slashed 24 percent Tuesday following a negative third quarter pre-announcement, but at least one analyst is sticking by the name.
Aruba said today it sees Q3 revenues between $144 and $147 million, down from prior guidance of $159 to $161 million, and sees EPS between $0.11 and $0.12, down from its from its previous guidance of $0.20. Aruba said it experienced a push-out in customer orders in April across the Americas, Europe, and Asia and attributed the weakness to a challenging economic environment worldwide.
William Blair's Jason Ader said that while they picked up some deal slippage at the quarter end, they are surprised by the magnitude of the push-outs. That said, their checks (through early April) did not indicate significant new competitive pressure, a pause related to the new 802.11ac standard, or secular changes in demand in the Wi-Fi market.
"We believe the deals are there and the pipeline sounds robust, but it has become harder to get customers to take action," he said. "We will wait for both the Aruba and Cisco (NASDAQ: CSCO) (Outperform) earnings calls next week to better understand current Wi-Fi market dynamics. Ruckus Wireless (NASDAQ: RKUK) Outperform) also missed its March quarter guidance, although the culprit there was service provider delays, and enterprise was strong.
The firm cut fiscal 2013 revenue from $620 million to $600 million and non-GAAP EPS of from $0.79 to $0.68. For fiscal 2014, they are now projecting revenue of $680 million (down from $734 million) and non-GAAP EPS of $0.80 (down from $0.96).
For an analyst ratings summary and ratings history on Aruba Networks click here. For more ratings news on Aruba Networks click here.
Shares of Aruba Networks closed at $22.05 yesterday.
Aruba said today it sees Q3 revenues between $144 and $147 million, down from prior guidance of $159 to $161 million, and sees EPS between $0.11 and $0.12, down from its from its previous guidance of $0.20. Aruba said it experienced a push-out in customer orders in April across the Americas, Europe, and Asia and attributed the weakness to a challenging economic environment worldwide.
William Blair's Jason Ader said that while they picked up some deal slippage at the quarter end, they are surprised by the magnitude of the push-outs. That said, their checks (through early April) did not indicate significant new competitive pressure, a pause related to the new 802.11ac standard, or secular changes in demand in the Wi-Fi market.
"We believe the deals are there and the pipeline sounds robust, but it has become harder to get customers to take action," he said. "We will wait for both the Aruba and Cisco (NASDAQ: CSCO) (Outperform) earnings calls next week to better understand current Wi-Fi market dynamics. Ruckus Wireless (NASDAQ: RKUK) Outperform) also missed its March quarter guidance, although the culprit there was service provider delays, and enterprise was strong.
The firm cut fiscal 2013 revenue from $620 million to $600 million and non-GAAP EPS of from $0.79 to $0.68. For fiscal 2014, they are now projecting revenue of $680 million (down from $734 million) and non-GAAP EPS of $0.80 (down from $0.96).
For an analyst ratings summary and ratings history on Aruba Networks click here. For more ratings news on Aruba Networks click here.
Shares of Aruba Networks closed at $22.05 yesterday.
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