Acacia Communications (ACIA - Free Report) recently posted a beat of the Zacks Consensus Estimate and despite that bit of good news, the share price and earnings estimates have been falling.
On November 2, the company posted a huge beat on the bottom line with 31% positive earnings surprise. The topline saw a minimal beat, but it was still a beat.
The bad news is that the company guided the next quarter below the consensus and that has sent the estimates and share price lower. Investors like to see earnings growth, not earnings contraction.
Acacia Communications, Inc. designs, develops, manufactures and markets communication equipments. The Company offers coherent optical interconnect products for cloud infrastructure operators and content and communication service providers. It operates primarily in the Americas, Europe, the Middle East, Africa and the Asia Pacific region. Acacia Communications, Inc. is headquartered in Maynard, Massachusetts.
The company guided Wall Street for EPS of $0.19-0.36, excluding non-recurring items compared to the $0.47 Wall Street Consensus Estimate. Management expects Q4 revenues of $83M-$93M compared to the estimate which was at $113M at the time.
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