Why Cambium Networks Shares Are Getting Hammered
Portfolio Pulse from Henry Khederian
Cambium Networks Corp (NASDAQ:CMBM) shares dropped by 36.5% after the company announced a cut in its Q3 revenue outlook from $62-$70 million to $40-$45 million. The company cited delayed government orders, slow sector growth, reduced orders, and economic challenges in EMEA as reasons for the cut. The company's full-year 2023 guidance is suspended. Despite lower reported revenues, point-of-sale revenues are up, suggesting reduced channel inventories. The company also has about $27 million in cash and a $45 million unused credit line.
October 05, 2023 | 1:21 pm
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Cambium Networks' shares dropped significantly due to a cut in its Q3 revenue outlook. The company's full-year 2023 guidance is also suspended, which may further impact investor confidence.
The company's shares dropped due to a cut in its Q3 revenue outlook, which is a direct indicator of the company's performance. The suspension of the full-year 2023 guidance may further erode investor confidence, leading to a potential further drop in the share price.
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