ARRIS Profit Surpass Estimates, Q1 Guidance Weak; Stock Down 5%

(RTTNews) - ARRIS Group Inc (ARRS), a provider of media entertainment and data communications solutions, on Wednesday reported fourth-quarter net earnings of $192.8 million or $1.29 per share compared with a loss of $2.8 million or $0.02 per share last year.

Excluding items, adjusted earnings for the quarter were $0.78 per share, which includes a $0.12 per share benefit related to research & development tax credits. This compares with adjusted earnings of $0.54 per share a year ago.

Revenues for the quarter were $1.26 billion compared with $1.20 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.61 per share on revenues of $1.26 billion for the quarter. Analysts' estimates typically exclude special items.

ARRIS ended the quarter with an order backlog of $631 million.

For the first quarter, the company expects adjusted earnings of $0.40 to $0.45 per share on revenues of $1.20 billion to $1.24 billion. Analysts expect earnings of $0.55 per share on revenues of $1.24 billion.

"Our business in the first quarter is being impacted by anticipated reductions in volume, product mix, and price reductions implemented at the beginning of the year," the company said.