Arris Stock Drops on Q2 Warning
Arris shares were down 5% in after-hours trading Friday after the supplier of broadband gear and set-tops reduced second quarter guidance amid ongoing industry consolidation and the strengthening U.S. dollar.
"The headwinds we faced in the second quarter were stronger than anticipated resulting in the update to our second quarter 2015 revenue and earnings guidance," Bob Stanzione, Arris chairman and CEO, said in a statement. "Our business continues to be impacted by external factors, most notably the various pending industry consolidations and by the strengthening of the US dollar. At this point, we anticipate that these factors will continue to impact us in the second half of 2015.”
Arris’ revised guidance is as follows:
• Revenue: $1.25 billion to $1.26 billion, versus previous guidance of $1.27 billion to $1.3 billion.
• Adjusted net income/diluted share: $0.51 to $0.55, versus previous guidance of $0.53 to $0.58
• GAAP net income per diluted share: $0.09 to $0.13, versus previous guidance of $0.17 to $0.22.
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