What happened
It's always pleasant for investors when one of their companies scores a double beat on quarterly results, topping analyst expectations for both revenue and profitability. But sometimes that isn't enough to carry the day, as some other key figures might not be as strong as anticipated.
Such was the dynamic behind the sell-off in Harmonic (HLIT -3.02%) on Tuesday. The video-streaming technology company's share price dived by more than 7% after it unveiled its latest set of quarterly figures.
So what
Just after market hours, Harmonic published its fourth-quarter and full-year 2022 results. These showed that the company earned just over $164 million in revenue. That, by the way, was an all-time quarterly high for Harmonic, and represented nearly 6% year-over-year growth.
Adjusted net income came in at $19.9 million ($0.17 per share) for the period; this was 13% higher than the fourth-quarter 2021 figure.
On average, analysts tracking Harmonic stock were modeling $159.3 million on the top line, and an adjusted net profit of $0.15 per share.
Harmonic's revenue gains were due in no small part to strong growth in both the video software-as-a-service (SaaS) and broadband segments, which rose 51% and 38%, respectively, year over year in the quarter.
Now what
Alas, most savvy investors trade on future potential rather than trailing performance, and that's where Harmonic hit sour notes.
It proffered guidance for both its current first quarter, and for the entirety of 2023. As for the latter period, the company is forecasting $695 million to $735 million in net revenue, shaking down into an adjusted per-share net profit of $0.56 to $0.72.
The average analyst estimate for annual revenue is $734.2 million, which falls within Harmonic's expected range. But that's not so for the adjusted per-share net profit figure: Those same prognosticators are collectively expecting $0.74.
