NetScout Systems Inc., a cybersecurity firm led by CEO Anil Singhal, witnessed a significant drop in share value, plummeting over 20% in the extended session on Monday. This comes on the heels of an announcement where the company reduced its annual outlook due to slower order conversions, despite a 3.5% rise to close at $27.59 in the regular session on the same day.
The company has now revised its expected adjusted full-year earnings to $2 to $2.20 per share and revenue between $840 million and $860 million. Both these figures are below prior estimates and analysts' predictions. The firm attributes these changes to industry and economic challenges encountered in the last month of the second fiscal quarter, which are anticipated to impact the second half of fiscal year 2024.
In addition to the full-year outlook, NetScout also provided a forecast for the second quarter. The company expects adjusted earnings to be between 60 cents to 62 cents on revenue ranging from $195 million to $197 million.
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