ARRIS Group, Inc. (NASDAQ:ARRS) on Friday cut its earnings and revenue outlook for the second quarter. Excluding items, the company is anticipating earnings in the range of 51 cents per share to 55 cents per share for the quarter, below its earlier prediction in between 53 cents -58 cents per share.
The network gear maker is expecting bottom-line profit in a range of 9 cents per share to 13 cents per share, as compared to its previous forecast in between 17 cents-22 cents per share. ARRIS is looking forward to post revenue in the range of $1.25 billion and $1.26 billion, versus its earlier estimate in between $1.27 billion and $1.31 billion.
CEO at ARRIS, Bob Stanzione said that the headwinds company faced in Q2 were stronger than expected due to which it had to update its second quarter earnings and revenue forecast. Stanzione added that external factors are continuously affecting ARRIS, particularly the strengthening of the US dollar and several pending industry consolidations.
The company is set to post its financial results for the second quarter on 29th of July. On the same day, ARRIS management will organize a conference call at 5:00 p.m. EDT to discuss its earnings and revenue.
ARRIS reported that recently disclosed merger with Pace PLC would enable it to tackle the negative effects of dollar and consolidation. The Georgia-based company decided to acquire Pace back in April, in a cash-and-stock deal valued at $2.1 billion to grow in international markets. The merger is proceeding as anticipated, with regulatory permissions recently received from both South Africa and Germany. ARRIS expects the combination to close during the fourth quarter of the current fiscal year. The company said that it will offer further information and details in the second quarter earnings call on 29th of July.
