Wireless equipment maker Powerwave (PWAV) has given its investors quite the thrill ride over the last four years, but the latest dive may have investors and analysts wondering if this company can ever achieve a sustainable base of business. Bad quarters happen to every company eventually, but very few established companies miss their revenue target by 50% and investors should ask themselves whether the sizable return potential here is still worth the ongoing risk and volatility.
A Terrible Third Quarter
After the close Tuesday, Powerwave announced that it was going to report a horrible third quarter result. Citing significant slowdowns at AT&T (T) and T-Mobile and disruptions in the Mideast and North Africa tied to the political upheavals, management announced that revenue would come between $75 million and $79 million – more than 50% shy of the average analyst estimate of $168 million.
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Powerwave May Be About To Fade To Black
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