Introduction
In a recent post-market trading session, Harmonic shares experienced a significant drop of 13%, falling to $13.01. This decline was prompted by the company's outlook for the third quarter and 2023, which came in below analysts' estimates. Despite this setback, Harmonic's stock has shown a year-to-date increase of 14%.
Third Quarter Projections
Harmonic, a company specializing in video delivery software, products, system solutions, and services, has projected revenue ranging from $125 million to $140 million for the third quarter. In terms of adjusted earnings per share, the company expects to either incur a loss of 2 cents or achieve earnings of 2 cents. These projections fell short of analysts' expectations, with FactSet's poll indicating an anticipated revenue of $189.5 million and adjusted earnings of 19 cents per share.
Forecast for 2023
Looking ahead to 2023, Harmonic forecasts revenue between $620 million and $660 million. On an adjusted basis, the company anticipates earnings per share ranging from 38 cents to 52 cents. However, this outlook did not meet the expectations of analysts polled by FactSet, who predicted revenue of $724.1 million and adjusted earnings of 70 cents per share.
Conclusion
In light of Harmonic's disappointing outlook for both the third quarter and 2023, its shares experienced a significant decline in post-market trading. While the company remains positive with a year-to-date increase of 14%, it will be crucial for Harmonic to reassess its strategy and make necessary adjustments to achieve more favorable results moving forward.
