Extreme Networks Slumps After Disappointing Q2 Sales Performance, Dull Outlook
Portfolio Pulse from Nabaparna Bhattacharya
Extreme Networks, Inc. (EXTR) reported a 6.9% year-over-year decline in Q2 FY24 revenue, with a disappointing outlook for Q3 and Q4. Despite beating revenue consensus, product revenue fell and adjusted EPS missed estimates. The company also repurchased shares but expects lower future revenues and a negative adjusted EPS in Q3, with a recovery anticipated in Q4.

January 31, 2024 | 4:26 pm
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NEGATIVE IMPACT
Extreme Networks reported lower Q2 revenue and a negative outlook for the upcoming quarters, with a significant stock price drop following the announcement.
The negative report on revenue decline and the disappointing future outlook, including expected lower revenue and negative adjusted EPS for Q3, are likely to impact investor sentiment negatively. The stock price has already reacted with a significant drop, indicating a bearish short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100