Infinera shares lost a third of their value on Thursday after the company said it expects current-quarter sales to come in lower than Wall Street had predicted.
On a Wednesday earnings call, the company forecast third-quarter sales between $180 million and $190 million, well below analyst predictions of about $273 million, according to a Thomson Reuters consensus estimate.
While the company posted a beat on the top and bottom line, CEO Tom Fallon said in a statement that "demand is softening in certain areas of our business and we face a difficult near-term revenue outlook.">
Infinera posted earnings of 21 cents a share on revenues of $259 million. Analysts had expected the company to report earnings of 18 cents on $255.8 million in revenue, according to a Thomson Reuters consensus estimate.
Prior to the earnings report, Infinera's stock had fallen nearly 31 percent this year.Disclaimer