What happened

Shares of Harmonic (HLIT -0.75%) have tanked today, down by 6% as of 12:05 p.m. EDT, after the company reported third-quarter earnings results. The results beat expectations, but guidance for the fourth quarter left a bit to be desired. The stock was down as much as 12% earlier in the morning.

So what

Revenue in the third quarter declined by 18% to $94.9 million, which was ahead of the $82.2 million in sales that analysts were expecting. That translated into adjusted earnings per share of $0.03, while the consensus estimate had called for an adjusted net loss per share of $0.05. The video delivery technology company reported $100.7 million in bookings for the quarter.

Red stock chart going down

Image source: Getty Images.

"Harmonic's third-quarter results were driven by strong performance in both our Cable Access and Video segments," CEO Patrick Harshman said in a statement. "Our Cable Access segment delivered solid sequential revenue growth and operating margin."

Now what

Investors appeared to be disappointed with Harmonic's guidance for the fourth quarter. Revenue is forecast in the range of $120 million to $130 million, which is shy of the $130.9 million in revenue that analysts are currently modeling for. Adjusted EPS is expected to be in the range of $0.10 to $0.18, with the midpoint of that outlook falling short of the $0.17 per share that the Street is looking for.

Adjusted gross margin is expected to be 50.5% to 54.5%, with adjusted EBITDA of $15.5 million to $24 million.