Novatel Wireless shares drop after weak forecast; company sees loss this quarterBy AP
Friday, February 26, 2010
Novatel Wireless shares drop after weak forecast
NEW YORK — Shares of Novatel Wireless Inc. slid Friday after the company’s forecast for the quarter fell short of expectations.
The stock was down 69 cents, or 9.4 percent, to $6.66 in afternoon trading. Shares have traded between $4.99 and $13.70 over the past year.
Novatel, which makes modems and wireless networking gear, said Thursday after the close that it expects an adjusted loss of 8 cents per share on sales of $70 million in the first quarter. Analysts were expecting a profit of 5 cents per share and sales of $84 million.
The company’s fourth-quarter profit, however — 7 cents a share excluding unusual items — met analysts’ expectations, according to Thomson Reuters.
“One step forward, two steps backward,” Craig-Hallum Capital analyst Anthony Stoss told investors in a note. “It seems like this is the mode that (Novatel) is currently stuck in.”
He cut his rating on the company’s stock by a notch to “Accumulate” from “Buy” and lowered his price target to $8 from $13.
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