Shares of Illinois-based Cambium Networks Corp. (CMBM) plunged 16.1% in the extended trading session on Thursday after the company lowered its guidance for the third quarter of 2021.
Cambium Networks offers wireless broadband networking infrastructure services to government agencies, enterprises and medium-sized wireless Internet service providers.
The company expects to report GAAP revenues of around $75 million in the third quarter, lower than the previous guidance range of $88 million to $92 million announced in August and the Street's estimate of $90.43 million.
Cambium Networks said, "The change in outlook primarily reflects greater than anticipated global supply constraints impacting shipments of products which we expect to continue into the first half of calendar 2022."
Moreover, it expects GAAP and adjusted net income to come below the lower end of the earlier announced guidance range. Cash is expected to total nearly $58 million. (See Insiders' Hot Stocks on TipRanks)
Meanwhile, the company is scheduled to release its third-quarter results on November 4.
Two months ago, Roth Capital analyst Scott Searle maintained a Buy rating on the stock and raised the price target to $69 from $64 (93% upside potential).
Following the release of the second-quarter financial results, the analyst said, "Cambium Networks reported record Q2 sales and EPS driven by continued strength in WiFi and PTM solutions. Overall, the company continues to see record demand and produces results despite supply chain constraints."
Overall, the stock has a Moderate Buy consensus rating based on 5 Buys, 1 Hold and 1 Sell. The average Cambium Networks price target of $57.92 implies nearly 62% upside potential. Shares have gained around 52% year-to-date.
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