Gigamon Inc, a manufacturer of cable network solutions and hardware, shares plunged 32 percent today after the company cut its second quarter forecast, citing difficulty in closing deals. The company now trades at the lowest level since its public debut in July of last year.
Some investors on Stocktwits took the forecast to be another dire sign for the struggling network installer, sentiment has plummeted since this morning’s announcement. Since March of this year, the company has already lost two thirds of it’s total market value.
The stock of Gigamon, was downgraded by analysts across the board. Goldman Sachs downgraded to Neutral and lowered price target to $14 from the earlier $29. Merrill Lynch downgraded Gigamon to Underperform from Neutral. Needham lowered it to Buy from Strong Buy and lowered price target to $20.
The news from Gigamon wasn’t all sour, CEO Paul Hooper said they added 84 new customers during the second quarter. Some investors think the stock will recover, and that the drop in price has been somewhat excessive.
Gigamon is expected to report its second quarter results after the close on July 24. Investors are looking for more partnerships and the full year revenue guidance specifically.