Cambium Networks (NASDAQ:CMBM) stock is falling hard on Wednesday after releasing results from its earnings report for the second quarter of 2023.
The bad news for CMBN stock starts with the networking company’s adjusted earnings per share of 3 cents. That’s worse than the 21 cents per share Wall Street was expecting for the quarter. It’s also a drop from the 6 cents per share reported in the same period of the year prior.
Also not helping CMBN stock is the company’s revenue of $59.5 million. Yet again, that comes in below analysts’ revenue estimate of $78.11 million. It also represents a 14% year-over-year decrease compared to $69.3 million.
Atul Bhatnagar, the outgoing CEO of Cambium Networks, said the following about the earnings report:
“Our second quarter results were disappointing as a result of lower demand for Enterprise products caused by lower order volumes from distributors and high channel inventories, and a challenging macroeconomic environment, especially in EMEA.”
Guidance Drops CMBM Stock
Cambium Networks’ outlook for the third quarter of 2023 also isn’t doing its stock any favors. The company expects adjusted EPS ranging from 13 cents and 25 cents on revenue of $62 million to $70 million. For comparison, Wall Street is expecting EPS and revenue of 32 cents and $84.72 million for the quarter.
The same also holds true for Cambium Networks’ 2023 guidance. That includes adjusted EPS between 59 cents and 78 cents and revenue ranging from $265 million to $275 million. Analysts’ estimates for 2023 have adjusted EPS coming in at $1.21 alongside revenue of $332.68 million.
CMBM stock is down 33% as of Wednesday 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.
