But consider:
Foundry to miss Q4 target
--4:45 pm - By Myra P. Saefong
Foundry (FDRY: news, msgs) said it expects fourth-quarter earnings of 11 cents to 14 cents a share on revenue of $100 million to $110 million. Analysts surveyed by First Call expect the company to post earnings of 24 cents a share on revenue of $129 million, on average, when it reports financial results on Jan. 16.
Foundry said there has been a shift in the last few weeks in the pattern of communications infrastructure capital spending. The company will provide sales and income statement guidance for 2001 when it announces final results for 2000, but also said 2001 guidance is expected to be "slightly lower than earlier estimates." Shares are down at $16.75 after-hours following a close at $30.63.<<
At 30, FDRY had a PE of 47. At 20, it will be 23.5 PE. The revenue shortfall is about 16% but FDRY may drop 33% or more. As of 11/15, it had 4.4m shares short, out of 118m float, representing a 1 day squeeze.
Needham upgraded it right after the warning. I would expect to see it dump out around 18, and it may be back to 27 by mid-Jan, when it reports.
Sometimes I think CEOs warn just to get it over with; capitulation can mean a faster rebound. |
