Tessco Technologies (NASDAQ:TESS) fell in morning trading after the wireless communications company reported lower-than-expected results in its third quarter and cut its outlook.
Shares dropped 8.7% to $18.07 at 10:55 a.m. in New York, expanding losses over the past year to 22%.
Net income rose to $2.9mln, or $0.35 per diluted share, in the three months ended December 27, from 1.7mln, or $0.20 per diluted share, in the year-earlier period, the Hunt Valley, Maryland-based company said in a statement late on Monday.
That lagged behind the Capital IQ consensus of $0.36 per share.
Q3 revenue rose to $139.5mln from $135.2mln year-over-year, missing predictions for $150.39mln.
Tessco expects full-year earnings to be $0.76 to $0.94 per share.
“As the third quarter progressed, and we entered the fourth quarter which is traditionally our weakest quarter for both revenues and earnings, we have seen increased purchasing hesitancy in all of our markets due to global economic concerns,” CEO Robert Barnhill said in the statement.
“We also expect recent weather events to temporarily hamper sales.”