Finisair Plummets 35% After Company Stuns With Weak Outlook, Chinese Business Slowdown Blamed
Tech darling FNSR is plummeting after hours, down by $14, or 35%, to $26 after the company released in line Q3 numbers, but an outlook that has left the investor base, not to mention its sellside lemming brigade, stunned. While the current sellside Q4 consensus is of 48 cents a share on revenue of $257.9 million, the company announced that "revenues for the fourth quarter to be in the range of
$235 to $250 million" and "earnings per diluted share is expected to
be in the range of approximately $0.31 to $0.35." The result: a stock that is down 33% after hours. Perhaps it is time form Miller Tabak's Alex Henderson, who has been ranked #1 11 times in the Institutional Investor "All Star" poll, to reduce his $60/Buy Price Target. Yet what is worst is that perpetual tech dynamo, China, is now growing dim: from the mea culpa: "the Company will be
impacted by...a slowdown in business in China
overall." Is this the beginning of the end for the tech bubble?
What is more troublesome is the reason cited for the major business slowdown:
During the fourth quarter ending April 30, 2011, the Company will be
impacted by the full three months of the annual price negotiations with
telecom customers that typically take effect on January 1, the 10-day long
shutdown at certain customers for Chinese New Year in February, the
adjustment of inventory levels at some telecom customers, particularly for
products which had previously been on allocation and long lead times,
including WSS and ROADM line cards, and a slowdown in business in China
overall. Primarily as a result of these factors, the Company indicated that
it currently expects revenues for the fourth quarter to be in the range of
$235 to $250 million.
Yep. China is slowing down ladies and gents. And techs are about to get clobbered.
What is most troublesome, or hilarious, depending on how one looks at it, is the array of sellside lemmings none of whom managed to anticipate this. Behold the wall of shame:
Who wants to bet that Maverick is one less tech analyst as of this writing?
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