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Investing.com -- Calix (NYSE:CALX) shares slid sharply in premarket trading on Tuesday after the telecom software provider unveiled first-quarter guidance that was well short of Wall Street estimates.
In the first quarter, the company sees current-quarter adjusted earnings per share in a range of $0.17 to $0.23 on revenue of between $225 million to $231 million. Bloomberg consensus expectations had called for an outlook of $0.38 and $267.6M, respectively.
The weaker guidance comes as the company expects appliance shipments to slow as customers halt broadband appliance purchases and mull plans to apply "for the tens of billions of government stimulus dollars," Calix said. The firm was referring to several U.S. government programs, such as the U.S. Broadband Equity, Access and Deployment Program, which aim to expand high-speed internet access across the country.
Fourth-quarter results beat estimates, however, with adjusted per-share profit of $0.43 and revenue of $264.7M topping projections of $0.36 and $264.4M.
Scott Kanowsky contributed to this report.