Why Plantronics Sank

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Plantronics (NYSE: PLT  ) have sunk today by as much as 13% after the company reported earnings that fell short.

So what: Fourth-quarter revenue inched up 3% to $177.6 million, with adjusted earnings per share of $0.62. In comparison, the Street was expecting $178.1 million in sales and a profit of $0.65 per share. Next quarter's guidance also came up short.

Now what: First-quarter revenue is expected to be between $177 million and $182 million, with earnings per share of $0.58-$0.63. Even the high ends of those ranges are short of the $182.2 million in revenue and $0.69-per-share profit that analysts were looking for. On the bright side, Plantronics doubled its quarterly dividend from $0.05 to $0.10 per share starting next quarter.

Interested in more info on Plantronics? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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