Select Page

Calix faced a setback as it reported first-quarter guidance that fell significantly below Wall Street’s expectations, causing a 22% plunge in its stock during afterhours trading. The company projected adjusted earnings per share (EPS) for Q1 to be in the range of $0.17 to $0.23, with revenue expected to fall between $225 million and $231 million.

These figures fell well short of analyst estimates, which had anticipated an EPS of $0.38 and revenue of $267.5 million. The disappointing outlook was attributed to a slowdown in appliance shipments, as telecom service providers hesitated to make broadband appliance purchases. This hesitation stemmed from the providers’ intention to evaluate spending plans carefully and explore opportunities to secure government funding, particularly from initiatives like the U.S. Broadband Equity, Access, and Deployment Program (BEAD), a $42 billion program aimed at enhancing high-speed internet access and adoption across the nation.

Despite this cautious outlook, Calix did report better-than-expected results for Q4, with adjusted EPS of $0.43 and revenue of $264.7 million, surpassing estimates of $0.36 and $264.4 million, respectively.