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Stock News - (NASDAQ:ADCT) shares Plummets on Weak Q1 Guidance
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ADC Telecommunications (NASDAQ:ADCT) plunged 13.55% to $5.74 in opening sessions after it forecast a worse-than-expected first-quarter revenue as it sees carrier spending declining.
The company forecast first-quarter sales of $250 million to $275 million, compared with analysts' expectation of $274 million.
Under normal seasonality patterns, ADC would expect first-quarter revenue to fall in the low single digits, but the wider decline in carrier spending prompted the weaker outlook, the company said.
For the fourth quarter ended Sept. 30, the company posted a loss from continuing operations of $19.2 million, or 20 cents a share. Excluding items, it earned 6 cents a share.
Revenue for the quarter was $183.9 million.
Analysts were expecting a profit of 4 cents a share, on revenue of $170.5 million, according to Thomson Reuters I/B/E/S.
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