Shares of NeoPhotonics (NPTN 0.13%) were tumbling this morning after the company reported its first-quarter results late yesterday.
The tech stock was down by 15.4% as of 11:36 a.m. EDT.
The company reported an adjusted diluted loss per share of $0.15, ahead of analysts' consensus estimate loss of $0.17 per share. NeoPhotonics' revenue of $60.9 million also outpaced Wall Street's expectation of $59.9 million for the quarter.
"NeoPhotonics again delivered strong results in the first quarter, as we transition our business to cloud-centric," CEO Tim Jenks said in a press release.
Despite the company's sales and earnings beating analysts' consensus estimates, investors weren't happy with NeoPhotonics' first-quarter results.
Investors were likely disappointed with the fact that revenue was down 67% from the year-ago quarter and that management's second-quarter outlook wasn't very optimistic.
NeoPhotonics' management said second-quarter revenue will be between $59 million and $65 million. That would be a 40% drop in sales from the year-ago quarter at the midpoint of guidance. Additionally, the company expects an adjusted diluted loss per share of $0.25 at the midpoint, which would a significant drop from the company's earnings per share of $0.16 in the year-ago quarter.
With the company's year-over-year drop in sales and its lackluster second-quarter outlook, it's no surprise some investors were selling their shares of NeoPhotonics today.