5 Stocks Closing Lower on Wednesday

by: Alex Shadunsky

With stocks falling for the third day this week on Wednesday, there were plenty of losers to choose from, especially from companies that missed analyst expectations in their results and/or guidance.

Juniper Networks (NYSE:JNPR) tumbled 21% following disappointing earnings and guidance. Net revenues for the second quarter increased 15% y/y to $1,120.5 million. The company posted non-GAAP net income of $167.2 million, or $0.31 per diluted share, for the quarter. Analysts expected EPS of $0.34.

While the long-term fundamentals driving demand for networking solutions are healthy, the company’s outlook for the September quarter reflects some near-term market weakness due primarily to the timing of certain service provider deployments. Its overall pipeline is strong and it anticipates many of its recent design wins will begin translating to revenue late in 2011. Juniper estimates revenue for the third quarter ending September 30 to be in the range of $1.070 billion to $1.120 billion. Juniper estimates that its non-GAAP net income per share will range between $0.26 and $0.30 vs. analyst estimate of $0.38.

Active Power (NASDAQ:ACPW) dropped 19% after the company’s Q2 earnings missed analyst estimates. Q2 revenues increased $3.2 million, or 20%, to $19.2 million versus the same year-ago quarter. Although the company reduced its net loss by 9% to $1.4 million or $0.02 per share, it still missed the analyst estimate of breakeven. The company said that it made certain investments in research and development and added personnel to meet the increased demand in its sales pipeline. While these factors impacted the quarter’s profitability, the firm believes these investments will enable it to continue to grow the business and meet its financial and strategic objectives.

Stratasys (NASDAQ:SSYS) fell 26% after revenues for the quarter came in lighter than expected. The company reported record revenue of $37.6 million for the second quarter ended June 30, compared to $30.1 million reported for the same period in 2010. Analysts forecast $39 million. The company said that Q2 results include two months of contribution from the company’s acquisition of Solidscape. The acquisition was completed in April of this year and contributed $2.1 million in revenue to the second quarter results. Excluding the contribution made by Solidscape, revenue was $35.5 million, an 18% increase over the same period last year. System shipments, excluding Solidscape, totaled a record 690 units for the second quarter of 2011, compared to 682 units for the same period last year.

Non-GAAP net income was $5.0 million for the second quarter, or $0.23 per share, representing a 95% increase over the non-GAAP net income of $2.6 million, or $0.12 per share, for the same period last year. Analysts were looking for EPS of $0.22.

Inphi (NYSE:IPHI) closed down 21% following weak Q3 guidance. Revenue for the second quarter of 2011 was $24.0 million, compared with $21.1 million for the second quarter of 2010. Non-GAAP net income for the second quarter of 2011 was $4.0 million, or $0.14 per diluted common share. This compared with non-GAAP net income of $2.9 million, or $0.14 per diluted share, for the second quarter of 2010.

For Q3, the company said that non-GAAP net income, excluding stock-based compensation expense, is expected to be between $2.8 million and $3.7 million, or $0.10-0.13 per diluted common share. Analysts expected EPS of $0.17.

The company said that while a slower than expected rollout of the Intel Xeon platform, coupled with some softness in networking infrastructure build outs in China and the Middle East, will impact Q3, it believes its strong operating momentum will resume in the fourth quarter this year as its newer products move into higher production volumes with its customers.

P.F. Chang's China Bistro (NASDAQ:PFCB) fell 12% after giving a weak FY11 outlook. The company reported that revenues for the quarter were $311.0 million as compared to $312.8 million in the prior year. Net income and diluted net income per share were $9.1 million and $0.40, respectively.

Based on recent sales trends, the company now anticipates that fiscal 2011 consolidated revenues will increase approximately 1% from fiscal 2010, which assumes estimated same store sales declines of 2-3% at both concepts for the remainder of the year. The company also expects to experience incrementally higher labor costs and, as a result, anticipates that restaurant operating income will decline approximately 120 basis points compared to fiscal 2010. Overall, the company now expects consolidated diluted earnings per share to range from $1.60 to $1.70 for fiscal 2011. Analysts were expecting EPS of $2.08.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.