Boston, MA 02/11/2014 (wallstreetpr) – Infoblox Inc. (NYSE:BLOX), the Santa Clara-based automated solutions provider for the network has announced Feb 26, will be the day its second –quarter earnings results will be announced. The network services provider has since announced the guidance for 2014, with significant cuts.
The result is mayhem on the stock market for Infoblox Inc (NYSE:BLOX) shares.
Besides, analyst too got on the band-wagon leading to a further fall in the prices. Sterne Agee moved the stock to ‘neutral’ with price target of $20. Meanwhile, Needham & Company moved the automated services provider to ‘Hold’ from the earlier ‘Buy’. Further, adding to the agony was Wedbush Securities which revised the price target to $25 and moved from ‘outperform’ to ‘neutral.’
Poor guidance announced triggers downgrade
The chain of consequences followed the announcement by Infoblox Inc (NYSE:BLOX) that in 2014, the company would miss the initial guidance, ending in July 2015. The guidance value provided by the management was much lesser than consensus figures of $250-54 million and $270-$276 million respectively.
Reasons for the poor guidance
For Infoblox Inc. (NYSE:BLOX) management the main reasons for the downward revisions in the guidance issued was based on the fall in orders, typically coming from government institutions and organizations. As the automation solutions provider of networks, Infoblox Inc relies heavily on the on-going services it provides across the departments and sections. In January, not only was the revenue weaker outside of this segment for the service provider, but a drastic drop in retail consumer line-up as well.
As Infoblox Inc. (NYSE:BLOX) moves into further into 2014 fiscal, it will need to innovate on the technology platforms it currently provides. As networks become more complicated and next generation of products and services are introduced, the pressure remains on Inflobox to deliver on the services required. Infobox went public in 2012.
