Shares of Plantronics (NYSE:PLT) tumbled on Wednesday after the headset and videoconferencing hardware provider reported its fiscal third-quarter results. Both revenue and earnings declined sharply, with revenue coming in below analyst expectations. As of 12:40 p.m. EST, the stock had fallen 36.2%.
Plantronics reported third-quarter revenue of $384.5 million, down 23.4% year over year and $14.7 million below the average analyst estimate. Product revenue plunged 28.9% to $316.6 million, while services revenue rose 20.6% to $67.8 million.
Plantronics began shipping the first products built on its next-generation architecture during the quarter. Even so, CEO Joe Burton said the company was "disappointed with our results this quarter, particularly Enterprise headsets." Exactly when these new products will start driving growth for Plantronics is anyone's guess.
Non-GAAP (adjusted) earnings per share came in at $0.30, down from $1.36 in the prior-year period but $0.17 higher than analysts were expecting. The company lost $1.97 per share on a GAAP basis.
For the fiscal fourth quarter, Plantronics expects to generate revenue between $354 million and $394 million, and non-GAAP EPS between a loss of $0.36 and a profit of $0.19 per share. The company also announced that it agreed to sell its consumer gaming business, a move expected to improve margins and working capital.
Given plummeting revenue and earnings, as well as guidance calling for more pain in the fourth quarter, the market found plenty of reasons to punish the stock.