ARRIS International Shares Fall Despite Beating 4th Earnings
Warrior Trading | Feb 23, 2017 09:11AM ET
ARRIS Group Inc (NASDAQ:ARRS)
ARRIS International (ARRS), a global media entertainment and data communications solutions company yesterday reported their fourth quarter and full year 2016 financial results. ARRIS reported fourth quarter adjusted earnings of $0.79 per share which beat analyst expectations of $0.70 per share. ARRIS reported fourth quarter revenues of $1.76 billion.
h3 ARRIS International CEO’s Comments/h3h3 ARRS Technical Analysis/h3“We ended the year with a strong fourth quarter, delivering results ahead of both our quarterly and annual guidance,” said Bruce McClelland, ARRIS CEO. “I’m proud of the work the ARRIS team has done in 2016, completing the integration of Pace and strengthening our relationship with customers. With respect to the first quarter 2017, we are estimating revenues in the range of $1.435 billion to $1.485 billion and adjusted revenues in the range of $1.440 billion to $1.490 billion. We expect GAAP net loss per diluted share in the range of $(0.13) to $(0.09) and adjusted net income per diluted share in the range of $0.36 to $0.40. With regards to the remainder of 2017, we expect the year to follow a similar trend to 2016. Guidance does not include the pending acquisition of the Ruckus Wireless and ICX Switch business announced today.” PR Newswire
ARRS opened trading yesterday at $29.83 which was down from the previous day’s trading close of $29.95. Shares closed trading yesterday at $30.70 and spiked down after market to $27.50, equivalent to a 10% decrease from the closing price. Taking a look at the daily chart we can see that the last time ARRS traded below these levels we have to go all the way back to November 8th, 2016 when it traded at $27.01.
Taking a closer look at the daily chart we can see that before the spike down ARRS had been in an overall upward trend dating back to June 27th, 2016 when it traded at $20.30. ARRS has a float of 187.61 million shares and traded 3.20 times the normal daily trading volume on Wednesday. For trading purposes, I would like to see ARRS open trading on Thursday below $28.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
h3 Company Profile/h3
Get The News You Want
ARRIS International plc provides media entertainment and data communications solutions in the United States and internationally. It operates through two segments, Customer Premises Equipment and Network & Cloud. The Customer Premises Equipment segment offers various product solutions, including set-top boxes, gateways, digital subscriber lines and cable modems, and embedded multimedia terminal adapters and voice/data modems that enable service providers to offer voice, video, and high-speed data services to residential and business subscribers.
The Network & Cloud segment provides cable modem termination system, converged cable access platform, multichannel video programming distributors, programmer equipment, Ad insertion technologies, and equipment in the ground or on transmission poles, as well as equipment used to initiate the distribution of content-carrying signals. This segment also offers technical support, professional services, and systems integration capabilities; software products that enable providers to deliver user experiences; multiscreen recommendations, offer management, and advertising services; network management products that collect information from the broadband network; and workforce management solutions enabling service providers to efficiently manage and dispatch field technicians, as well as network surveillance and issue correlation software and services.
The company was formerly known as ARRIS Group, Inc. and changed its name to ARRIS International plc in January 2016. ARRIS International plc was founded in 1969 and is headquartered in Suwanee, Georgia.”
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.