Cambium Networks (NASDAQ:CMBM) stock is taking a beating on Thursday following the release of its preliminary earnings for Q3.
The bad news for CMBM stock comes from its expected revenue of $40 million to $45 million for the third quarter of 2023. That would see it missing Wall Street’s estimate of $64.18 million. Investors will also note that Cambium Networks was previously expecting revenue for the period to range from $62 million to $70 million.
Cambium Networks says multiple factors weighed on its revenue during the quarter. That includes sluggish revenue and budget timings for its Point-to-Multi-Point business, lowered orders and stock rotations, as well as other economic headwinds.
Another blow to CMBM stock comes from the company suspending its guidance for the full year of 2023. For the record, Wall Street is expecting the company to report revenue of $268.17 million in 2023.
CMBM Stock Drops on Other Outlooks
To go along with the company’s lowered revenue estimate for Q3, it also provided an update on net income expectations. This is what the company said on the matter:
“The outlook for Cambium Networks’ third quarter 2023 net income (loss) and income (loss) per share are expected to be below the low end of the previous GAAP and non-GAAP ranges. Cash is expected to be approximately $27 million; in addition, Cambium Networks has available an unused $45 million revolving credit line.”
CMBM stock is down 35.4% as of Thursday morning.
Investors seeking out even more of the most recent stock market news will want to keep reading!
We’re offering insight into the top stock market stories worth reading about on Thursday! A few examples include why shares of Meiwu Technology (NASDAQ:WNW) and Orchard Therapeutics (NASDAQ:ORTX) stock are up, as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the links below!
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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.
