Why Is Clearfield (CLFD) Stock Down 28% Today?


  • Clearfield (CLFD) stock is dropping with its latest earnings report.
  • The company missed both earnings per share and revenue estimates.
  • It also lowered its outlook for the full year of 2023.
CLFD Stock - Why Is Clearfield (CLFD) Stock Down 28% Today?

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Clearfield (NASDAQ:CLFD) stock is falling on Friday after the passive connectivity products company released its earnings report for the fiscal second quarter of 2023.

CLFD stock is dropping after the company reported diluted earnings per share of 67 cents for the quarter. That’s below Wall Street’s estimate of 69 cents for the period, even if it’s a 2% jump from the 66 cents reported in fiscal Q2 2022.

Adding to that is the company’s revenue of $71.8 million reported in fiscal Q2 2023. Yet again, that comes in below analysts’ revenue estimate of $71.98 million for the period. That’s despite it being a 34% increase year-over-year from $53.5 million.

Cheri Beranek, president and CEO of Clearfield, said this in the earnings report:

“Our second quarter fiscal 2023 results came in relatively in line with our expectations. However, following our first quarter report, what we originally thought was a transition to a more normalized, seasonally driven ordering and deployment pattern by some of our customers has developed into a much more significant lull in demand as inventory is digested.”

Fiscal 2023 Guidance Hits CLFD Stock

Clearfield lowered its guidance for fiscal 2023 in its latest earnings report. This has it expecting EPS ranging from $1.80 to $2.10 on revenue of $260 to $275 million. That doesn’t look good next to Wall Street’s estimates of $3.87 per share and revenue of $365.93 million.

CLFD stock is down 27.9% as of Friday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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