Why Is Emcore (EMKR) Stock Down 41% Today?


  • Emcore (EMKR) stock is dropping on a disappointing fiscal Q2 earnings report.
  • That includes a major revenue miss for the company.
  • Its revenue outlook for fiscal Q3 is also lacking.
EMKR Stock - Why Is Emcore (EMKR) Stock Down 41% Today?

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Emcore (NASDAQ:EMKR) stock is falling hard on Thursday following the release of the navigation system and inertial sensing products company’s fiscal second quarter of 2024 earnings report.

That comes alongside revenue of $19.6 million for the quarter. This is still well below the $23.86 million in revenue that Wall Street was expecting. It’s also down from the $24.25 million reported in the same period of the year prior.

That’s despite the company reporting adjusted earnings per share of -8 cents during the quarter. This is better than the -30 cents per share analysts were predicting. It’s also better than the -$1.30 from the same time last year.

Emcore Chief Financial Officer Tom Minichiello said the following in the earnings report:

“Lower-than-expected revenue in the March quarter was primarily due to product shipment delays and declining revenue from our Budd Lake site. The lower top-line negatively impacted 2Q24 profit margins.”

Guidance Hits EMKR Stock

Emcore said it expects revenue for its fiscal third quarter of 2024 to range from $19 million to $21 million. That would see it come in below Wall Street’s revenue estimate of $26.21 million for the quarter.

It’s also worth noting that Emcore CEO Jeff Rittichier is leaving the company immediately. This also has him resigning from the board of directors. He remains on as a consultant while Emcore seeks out a new CEO.

EMKR stock is down 41.3% as of Thursday morning with 135,000 shares traded. That’s just above its daily average of roughly 130,000 shares.

Plenty more stock market stories are available 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.

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