Broadband software company Calix (NYSE:CALX) plunged in trading after it swung to a loss in the fourth quarter. The company reported a Q4 loss of $0.06 per share compared to earnings of $0.17 per share in the same period last year. Analysts were expecting the company to report earnings of $0.36 per share. On an adjusted basis, Calix reported earnings of $0.43 per share in the fourth quarter.
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The company’s fourth-quarter loss stemmed from charges linked to halting shipments of its legacy product, a minor part of its sales. Calix posted revenues in the fourth quarter of $264.7 million, up by 8.3% year-over-year compared to consensus estimates of $264.4 million.
Looking forward, Calix has projected revenue of $225 million to $231 million in the first quarter, with adjusted earnings likely to be between $0.17 and $0.23 per share. This forecast was below analysts’ revenue projections of $267.5 million.
Is CALX a Good Stock?
Analysts are cautiously optimistic about CALX stock, with a Moderate Buy consensus rating based on two Buys and one Hold. CALX stock has declined by more than 10% over the past year, and the average CALX price target of $52 implies an upside potential of 17.3% at current levels.
