NEW YORK (AP) -- Shares of Silver Spring Networks tumbled 28 percent in premarket trading Friday as the company's projected fourth-quarter and full-year results came in below Wall Street expectations.
The company, which provides a networking platform and services that help utilities upgrade power grid infrastructure, said Thursday that it anticipates a loss of 1 cent per share to flat results for the fourth quarter, excluding certain items. Revenue is expected between $95 million and $96 million, while adjusted revenue is predicted in a range of $88 million to $89 million.
Analysts surveyed by FactSet expected earnings of 14 cents per share on revenue of $100.7 million.
For the year, Silver Spring Networks Inc. foresees a loss of 8 to 10 cents per share, excluding certain items. Revenue is forecast between $325 million and $326 million, while adjusted revenue is expected in a range of $342 million to $343 million. Wall Street is looking for earnings of 8 cents per share on revenue of $355.2 million.
Jeffrey Osborne of Stifel Nicolaus said the company's fourth-quarter performance was mostly hurt by delays on two large software contracts.
Osborne also said that the Silver Spring — which went public in March — is still learning how to provide outlooks.
"Hopefully this serves as a lesson that winder ranges of guidance, as opposed to point estimates, may be appropriate," he wrote.
Osborne said a bright spot is that the company's backlog is up 17 percent year over year, which was better than he expected.
The analyst maintained a "Buy" rating and lowered Silver Spring's price target to $25 from $30.
The stock fell $6.50 to $17 before the market open.