UBS cut its estimates and price targets on ADC Telecommunications (ADCT) Wednesday, explaining that ADC's quarterly results were lower than expected.
ADC Telecommunications late Tuesday posted 29 cent earnings per share for the three months ending in July compared to 3 cents for the comparable year ago quarter. Analyst Nikos Theodosopoulos said the company's third quarter pro forma earnings per share were 1 cent lower than he expected, among other things.
He also noted ADC's fourth quarter revenue guidance of $315 million to $325 million, which included $15 million in sales from ADC's recently completed acquisition of the privately-held Fiber Optic Network Solutions. UBS says that without this acquisition, ADC would expect to see a sales decline of 2% to 5% during the fourth quarter compared to the third, explained by a slowdown at Verizon (VZ) and Nextel (NXTP)'s fiber-to-the-premise (FTTP) and Wireless network deployments. (ADC supplies communications infrastructure products to companies like Verizon and Nextel.)