for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

BUZZ-EXFO Inc: Set for biggest daily drop in seven years after weak Q4

** Canadian telecom service provider’s U.S.-listed shares tumble 16 pct to $2.99 as Q4 revenue falls short of estimates and co lowers FY EBITDA outlook

** Stock set for biggest daily pct fall since June 2011

** Q4 gross margins fell to 60.4 pct from 61.9 pct a year earlier

** At least 4 brokerages trim their price targets on stock

** Results and guidance was driven by continued execution and integration struggles with the Astellia wireless test acquisition - Northland Capital

** Organic revenues fell while recent Astellia acquisition appears to be weighing more heavily on margins than expected - Canaccord Genuity

** However, a strong market dynamics in optical test along with EXFO’s market leadership and profitability will support the shares and cash flow as co continues to invest in wireless in front of a major 5G cycle - Northland Capital

** Of the 8 brokerages covering stock, 7 rate “hold” and one “buy” or higher; Median PT at $4.17

** Including session losses, EXFO tumbles 28 pct this year (Reporting by Medha Singh in Bengaluru)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up