Avaya Holdings Drops After Q1 Results, Outlook Below Consensus

(RTTNews) - Shares of digital communications products, solutions and services provider, Avaya Holdings Corp. (AVYA) are down more than 22% Wednesday morning after the company's first-quarter results fell short of analysts' view. Second-quarter as well as full-year earnings outlook also came in below the consensus estimates.

Net loss in the first quarter widened to $66 million or $0.79 per share from net loss of $4 million or $0.06 per share last year.

Excluding one-time items, the company reported earnings of $0.42 per share. On average, 7 analysts polled by Thomson Reuters expected the company to report earnings of $0.68 per share.

Revenues were $713 million in the quarter, lower than $743 million a year ago. The consensus estimate was for $736.21 million.

Looking forward, the company expects second-quarter revenue to be in the range of $730 million to $745 million. Analysts expect revenue of $731.14 million.

Adjusted EPS is expected in the range of $0.58 to $0.66. The consensus estimate stands at $0.69 per share.

For the full year, the company sees revenue in the range of $2.975 billion to $3.025 billion. Analysts expectation is for $3 billion.

Adjusted EPS for the full-year is expected between $2.72 and $2.88. The consensus estimate stands at $2.98 per share.

AVYA touched a new low of $13.83 this morning.