Radware Tumbles Most Since 2004 as Profit Trail ForecastLeslie Picker
Radware Ltd., an Israeli maker of technology that helps networks run efficiently, sank the most since 2004 in New York after profit trailed forecasts as sales in China and the European, Middle East and Africa region slowed.
Shares of Radware, based in Tel Aviv, plunged 23 percent to $29.07 in New York, the lowest close since July. Trading volumes were more than 20 times the daily average over the past three months, data compiled by Bloomberg show. Radware posted the biggest drop on the Bloomberg Israel-US Equity Index of the largest Israeli companies traded in the U.S., which slid 0.8 percent.
First-quarter adjusted earnings dropped to 30 cents a share from 39 cents a year earlier, or at least 10 cents lower than Radware’s projection, the company said in a preliminary statement today. On average, analysts surveyed by Bloomberg estimated profit of 43 cents. Sales of $45 million also trailed both the company’s forecast and analysts’ estimates.
“Clearly there’s disappointment,” Alex Henderson, an analyst at Needham & Co. in New York who rates Radware a buy, said by phone. “Their problem is very much in Europe and China. This was really existing customers that simply are taking longer to put orders on projects that are ongoing.”
Radware was worst performer in the Nasdaq Telecommunications Index today. Competitor F5 Networks Inc. slumped 19 percent after reporting preliminary quarterly profit and revenue that missed its forecast as North American sales slowed.