ANTC--news from Atlanta today
<<Shares of Antec (ticker symbol ANTC), a Norcross-based communications technology company, were off as much as 25 percent at one point Wednesday in spite of a strong third quarter during which earnings met analysts' expectations.
Wachovia Securities analyst George Hunt called the sell-off "way overdone," given that revenue was better than expected and earnings met the analysts' median forecast of 27 cents per share.
"But the company said gross margins were lower, and that's what caused a lot of bears to bail out of the stock," said Hunt.
Antec, which supplies cable telephony equipment to AT&T (T) and other companies, said its gross margin fell to 21.1 percent from 22.4 percent in the second quarter due to changes in the product mix, as well as temporary supply shortages.
Hunt said he expects the margin to improve to 22.3 percent in 2000.
"In their cable telephony business --- selling equipment to cable TV operators --- as they get more sales through a joint venture with Nortel (NT), gross margins are pushed lower" because it's a lower-margin business, Hunt told Dow Jones News Service.
In its financial report, Antec reported net income of $10.8 million, or 27 cents per share, on sales of $237.2 million for the Sept. 30 quarter. A year ago, net income was $5 million, or 13 cents per share, on sales of $150.3 million.
Antec's shares closed at $44.62 1/2, down $11.93 3/4, or 21 percent, on 9.6 million shares, or 11 times average daily volume.
Among other analysts, Eric C. Buck of Donaldson Lufkin & Jenrette reiterated a "buy" rating on the stock on Wednesday and said the shares should trade at $60 within 12 months....>>
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