Shares of communication equipment company Calix (NYSE:CALX) fell sharply on Wednesday, declining as much as 29.2%.
The stock's decline came following the company's fourth-quarter financial results, which included revenue that was meaningfully below analysts' forecasts and management's own guidance for the period.
Calix reported fourth-quarter revenue of $115.5 million, down from $138 million in the year-ago quarter. Management had guided for revenue during the period to be between $122 million and $127 million. In addition, analysts were expecting fourth-quarter revenue of about $125 million.
Non-GAAP earnings per share for the period were $0.13, at the high end of management's guidance for $0.08 to $0.14 and above a consensus analyst estimate for $0.11.
"We are pleased to have exceeded consensus earnings by 2 cents per share in the fourth quarter of 2018 as revenue from our platform offerings exceeded our plan, while our legacy revenue fell short of our expectations owing to late-quarter softness by a few long-standing customers," Calix management wrote in the company's fourth-quarter shareholder letter.
Management said it expects first-quarter revenue between $100 million and $106 million, similar to analysts' average estimate for first-quarter revenue of $105.5 million. And management forecasts a non-GAAP loss per share for the period ranging from $0.07 to $0.02. Analysts, on average, were guiding for a loss per share of $0.05 during the period.