By Michael Dabaie


Cambium Networks Corp. shares fell 24% to $ 27.35 in morning trading after the wireless network infrastructure provider cut its third-quarter revenue forecast, citing supply issues.

Cambium lowered its revenue forecast on Thursday to around $ 75 million, from its previous forecast of $ 88 million to $ 92 million, as global supply constraints impact product shipments.

The company said it expects supply issues to continue in the first half of 2022.

“Global demand remains healthy. We enter the fourth quarter of 2021 with an order book remaining strong, up 57% year over year. Without the supply constraints, Cambium Networks would have been in or above the high end of sales for the previous third quarter of 2021. range of perspectives, ”the company said.

JP Morgan lowered its price target to $ 49 from $ 60 and rated the stock overweight.

“As we continue to see Cambium well positioned to benefit from a strong investment cycle towards broader network connectivity, the impact of supply chain headwinds extending into next year brings us drastically lowering our profit estimates, as well as our December 22 price. target, ”the bank said in an analyst note.

Raymond James kept the action going at Market Perform.

“The announcement is a disappointment, especially since management had indicated that it was factoring in supply chain issues in previous forecasts and downplaying supply chain headwinds. Cambium revealed a backlog up 57% year-on-year in 4Q20, implying healthy demand. Such a large shortfall is likely to affect management’s credibility with investors despite a series of solid results, “said Raymond James in his note .


Write to Michael Dabaie at michael.dabaie@wsj.com


Source link