Emcore (EMKR) Posts Wider Loss, Shares Plunge 25%

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09:56:21 am on August 4, 2011

EMCORE Corporation (EMKR) posted a wider loss than expected last night and traders are punishing the stock, sending it plunging down 25% through support of the 200 day moving average.  While revenues were about inline with analyst estimates at $50 million, the EPS number was deeper in the red than what analysts expected.  EMKR posted a loss of .12/share vs the estimate for a loss of .04.  With revenues stagnating and the EPS losses increasing again, this is a company that isn’t going to hit profitability quite as quick as traders had believed when the stock soared earlier in the year.

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Looking ahead to next quarter the company is expecting revenues in the range of $51 – $55 million which is about what analysts expect ($54 million).

Today’s earnings report and the resulting technical damage renders EMKR a broken stock and likely for some time.

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Comments  

From what I can tell, the stock hasn’t plunged anywhere near 50%.

 

Thanks for pointing this out John. Fixed.

 
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