Extreme Networks Inc. (EXTR)

Extreme Networks Inc. (EXTR) stock dropped by 7.36% due to the company lowerd its guidance and a change in leadership. These factors led to negative sentiment among investors, causing a stock decline. Here are the key highlights:

• Lowered Guidance: Extreme Networks reduced its revenue guidance for the second quarter of fiscal 2024, now expecting revenue in the range of $294 million to $297 million, down from the previous estimate of $312 million to $327 million. The revision was attributed to industry challenges, including channel digestion and extended sales cycles, with large deals being postponed to future quarters.
• Leadership Changes: The company announced changes in its executive leadership. COO Norman Rice will transition to the role of Chief Commercial Officer, focusing on revenue growth and overseeing sales, partners, services, and supply chain organizations. Chief Revenue Officer Joe Vitalone has resigned but will serve in an advisory capacity to facilitate a smooth transition.
• CEO Statement: CEO Ed Meyercord acknowledged the industry headwinds and delayed deals that led to the revised guidance. The company is set to announce earnings on January 31. Following this news, Extreme Networks' stock dropped by 7.4% to $16.23 per share, and it has seen a 16% decline in value over the past year. Investor sentiment likely played a role in the stock's decline, given the lowered revenue expectations and leadership changes.

Extreme Networks Stock (EXTR) dropped by 13.39% from $20.62 to $17.86 in the trading on Wednesday November 1, 2023. The reason why EXTR stock down today is due to disappointing forward guidance. Extreme Networks posted robust results for the first quarter of fiscal year 2024, ended Sept. 30, but with next-quarter guidance far below Wall Street's consensus views. The Street consensus pointed to earnings near $0.37 per share on revenue in the neighborhood of $368 million in the second quarter. The midpoints of management's official target ranges were just $0.29 per share and $320 million, respectively.

Shares of Extreme Networks Information Technology (EXTR) dropped by 6.43% from $24.26 to $22.70 in the trading on Thursday October 5, 2023. The reasons why stock EXTR is down today includes:

• Cautious sentiment toward economic data: Concerns about rising mortgage rates and low weekly jobless claims raised caution among investors, particularly in anticipation of potential Federal Reserve rate hikes.
• EXTR's long-term problems: The stock's decline can also be resulted from several long-term issues faced by Extreme Networks, including increased competition from rivals like Cisco and Juniper, disruptions in the supply chain, and a comparatively low valuation when compared to industry peers.

Extreme Networks Inc (EXTR) witnessed a decline of 9.1% to $25.16 on the Friday trading. Its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance.

https://finance.yahoo.com/news/extreme-networks-incs-uncertain-future-170231200.html