Bay Networks Dn 9% On Questions
Over March-Quarter Outlook
Dow Jones Newswires
No further information is available at this time.
No further information is available at this time.
By Joelle Tessler
NEW YORK (Dow Jones)--Bay Networks Inc. (BAY) shares
slipped 11% Wednesday a day after the company warned
analysts that results for its March quarter tend to impacted by
seasonality and that revenue for the period could be
sequentially up or down.
A number of analysts had lifted their ratings on Bay Networks
early Wednesday after the networking equipment maker beat
consensus earnings expectations for the second quarter ended
last month, after the market closed Tuesday.
But, the company's forward-looking comments prompted
other analysts to cut their ratings and take a more cautious
stance on the near-term outlook for Bay Networks.
Sources said Bay Networks indicated to analysts late Tuesday
that revenue has been sequentially down in the March quarter
over the past few years and that it would like to break this
trend this year.
" I had never even considered that it could be sequentially
down," said Deutsche Morgan Grenfell analyst Noel Lindsay,
who earlier cut his rating on the stock to accumulate from
buy. "This is incrementally less optimistic."
Bay Networks late Tuesday posted operating earnings of 27
cents a diluted share for its fiscal second quarter, above the
10 cents a share in operating earnings that the company
reported for the year-ago period.
Bay Networks, which has been in a turn around under new
management for the past year, also beat Wall Street
consensus estimate of 26 cents a share.
The company's NYSE-listed shares were recently down 3
1/4, or 11%, at 26 3/16 on volume of 4,480,100 shares
compared with an average daily volume of 3,225,800.
Company officials declined to comment on the stock
movement Wednesday. |
