Cavium Inc & Chesapeake Energy Corporation Slump After Earnings
Cavium Inc (NASDAQ:CAVM) shares slid in the pre-market session after the company late Tuesday provided earnings forecast for the second quarter that lagged the analysts estimates.
The company said that it expects to earn 1-3 cents a share on revenue of $54 million and $56 million, in the current quarter, well below analysts’ consensus of 6 cents.
For the first quarter, the company reported an increased loss and lost $13.83 million or $0.28, compared to a year ago loss of 9.41 million or $0.19 per share. The latest results included expenses of $14.7 million related to stock-based compensation and related payroll expense.
On an adjusted basis the company would have earned 2 cents a share, topping analysts’ estimates by a penny.
Revenue during the quarter fell to $52.74 million from last quarter’s $56.29 million, almost in line with analysts’ estimates of $52.63 million.
Shares of CAVM slumped 7.56% to $27.50 in the pre-market session.
Chesapeake Energy Corporation (NYSE:CHK) reported a sharp decline in its first-quarter loss, but the company’s slid as the results came below analysts’ estimates.
The company reported a loss of $71 million, or 11 cents per share, down from a year ago loss of $205 million, or 32 cents per share. On an adjusted basis, the company would have earned 18 cents a share, missing analysts’ target by 10 cents.
Revenue during the quarter grew 50% to $2.42 billion compared with $1.61 billion a year ago, but missed analysts’ estimates of $2.71 billion.
Looking ahead, Chesapeake forecast production for the remaining three quarters of 2012 at 779 billion cubic feet of natural gas and 31.6 million barrels of liquids. It sees a decline in natural gas production capacity of about 12 percent next year after adjusting for the cutbacks it made this year.
Yesterday, before the earnings, the company’s founder resigned as chairman following shareholder complaints about his business interests.
Shares of CHK are down 5.61% to $18.50 in the pre-market session, lost of most its yesterday’s gain of 6.30%.