ShorTel (SHOR) Slammed on Earnings/Guidance and Acquisition of M5 Networks; Wall Street Firms Mixed on News
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Price: $7.50 --0%
Rating Summary:
5 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 7 | New: 11
Rating Summary:
5 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 7 | New: 11
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Yesterday after the close, ShorTel (Nasdaq: SHOR) reported Q2 EPS of $0.03, 4 cents better than estimates. Revenue for the quarter came in at $58 million versus the consensus estimate of $55.63 million.
Although, for Q3, SHOR said revenue is expected to be in the range of $53 million to $57 million. (Consensus is $58.22M)
GAAP operating expenses are expected to be in the range of $41 million to $42 million, which includes approximately $3.0 million in stock-based compensation expenses and amortization of intangibles. Non-GAAP operating expenses are expected to be in the range of $38 million to $39 million.
Separately, ShoreTel announces the acquisition of M5 Networks for $146.3 million.
Today, shares crumbled, down almost 20% to $5.50 per share. The total market cap of the company is now $262 million (vs. yesterday's acquisition which is over 50%). Also, investors may not have been happy about the company's revenue guidance, which came in below consensus.
This afternoon, JPMorgan came out with comments defending the company/stock. But, another firm, Craig-Hallum, wasn't so optimistic, and downgraded shares from Buy to Hold (cutting price target from $9 to $6).
To see more ratings on SHOR, Click Here
Although, for Q3, SHOR said revenue is expected to be in the range of $53 million to $57 million. (Consensus is $58.22M)
GAAP operating expenses are expected to be in the range of $41 million to $42 million, which includes approximately $3.0 million in stock-based compensation expenses and amortization of intangibles. Non-GAAP operating expenses are expected to be in the range of $38 million to $39 million.
Separately, ShoreTel announces the acquisition of M5 Networks for $146.3 million.
Today, shares crumbled, down almost 20% to $5.50 per share. The total market cap of the company is now $262 million (vs. yesterday's acquisition which is over 50%). Also, investors may not have been happy about the company's revenue guidance, which came in below consensus.
This afternoon, JPMorgan came out with comments defending the company/stock. But, another firm, Craig-Hallum, wasn't so optimistic, and downgraded shares from Buy to Hold (cutting price target from $9 to $6).
To see more ratings on SHOR, Click Here
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