A10 Networks (ATEN) Falls 28% on Dismal Q3 Preliminary Results
A10 Networks ATEN shares were trading 28% lower in the pre-market trading session today as the company’s latest forecast for third-quarter 2023 revenues fell short of the Zacks Consensus Estimate.
In its preliminary results announced during late hours on Tuesday, the company expects to report third-quarter revenues in the range of $56.5-$58.5 million, much lower than the consensus mark of $75.3 million. The forecast also depicts a year-over-year decline in the range of 19%-22%.
A10 Network pointed out that a decline in revenues can be attributed to industry related headwinds, including delays in capital expenditures by North American service providers, resulting in the postponement of deals originally scheduled to close in the third quarter.
A10 Networks, Inc. Price and Consensus
A10 Networks, Inc. price-consensus-chart | A10 Networks, Inc. Quote
The company stated that it is taking steps to maintain its profitability and cash generation. It expects its cash and cash equivalents for the third quarter in the range of $162-$166 million, which marks an improvement from $153.9 million in the previous quarter.
A10 Networks anticipates fourth-quarter revenues in the range of $70-$80 million. This is expected to contribute to the overall increase in full-year 2023 non-GAAP earning per share.
Zacks Rank and Stocks to Consider
ATEN’s shares have fallen 7.7% year to date. ATEN carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader technology sector are NVIDIA NVDA, Paylocity Holding PCTY and Palo Alto Networks PANW.
NVIDIA sports Zacks Rank #1 (Strong Buy), while Paylocity and Palo Alto Networks carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA's third-quarter fiscal 2024 earnings has been revised upward by 8 cents to $3.32 per share in the past 30 days. For fiscal 2024, earnings estimates have increased by 21 cents to $10.67 per share in the past 30 days.
NVIDIA’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, the average surprise being 9.8%. Shares of NVDA have surged 198% year to date.
The Zacks Consensus Estimate for Paylocity’s first-quarter fiscal 2024 earnings has dropped by a penny to $1.07 per share in the past 60 days. For fiscal 2024, earnings estimates have moved 14 cents upward to $5.58 per share in the past 60 days.
Paylocity’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 39.7%. Shares of PCTY have declined 3.4% year to date.
The Zacks Consensus Estimate for Palo Alto Networks' first-quarter fiscal 2024 earnings has been revised upward by 6 cents to $1.16 per share in the past 60 days. For fiscal 2024, earnings estimates have increased by 38 cents to $5.34 per share in the past 60 days.
Palo Alto Networks’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 22.2%. Shares of PANW have surged 66.1% year to date.
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