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What: Shares of Newport (NASDAQ:NEWP) got crushed today, down by as much as 12% after the company reported earnings that fell short of expectations.
So what: Revenue in the first quarter came in at $132.6 million, which resulted in non-GAAP earnings per share of $0.16. Both figures missed Street forecasts of $138.2 million in sales and $0.19 per share in adjusted profit. CEO Robert J. Phillippy acknowledged that the company's primary markets were weak.
Now what: Newport expects conditions to improve throughout 2013, and second-quarter sales should be "slightly higher" than first quarter revenue, although the company opted not to provide specific outlook figures. Needham downgraded Newport from "buy" to "hold," subsequently, saying the next couple quarters could be difficult amid much uncertainty on the horizon. The analyst believes it will be hard to predict when things will improve.
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