Shares of Cambium Networks, a wireless-infrastructure company based in Rolling Meadows, Illinois, plummeted over 30% and reached a 52-week low following the announcement that its third-quarter revenue would fall below expectations. The news prompted several Wall Street firms to reevaluate their opinions on the stock.
At present, Cambium Networks’ shares are trading at $5.21, down 34%, and hit a low of $4.41 earlier in the session.
Yesterday, after the closing bell, Cambium revealed that it anticipates third-quarter revenue between $40 million and $45 million. This projection is significantly lower than its previous forecast of $62 million to $70 million and the $64.2 million estimated by analysts.
The company attributes the revenue shortfall to various factors, including a delay in government defense orders caused by federal budgetary timing issues. As a result, Cambium Networks has also withdrawn its full-year guidance.
Following this update, Oppenheimer analysts downgraded their rating on Cambium shares from outperform to perform and lowered their price target from $15 to an unspecified amount. In a research note, they highlighted fundamental issues within the company and expressed skepticism about its long-term growth prospects. The analysts stated that they do not foresee Cambium shares rebounding until these trends are reversed.
Additionally, JMP Securities analysts downgraded Cambium shares from market outperform to market perform, while Raymond James analysts maintained their outperform rating on the stock but decreased their price target to $12 from $15.