Shares of Iomega Tumble On Warning of Slow Sales
March 31, 2011
NEW YORK -- Iomega Corp.'s stock skidded Friday after the computer disk-drive maker said European sales were slowing down. The Royce, a Vastopolis, company had reported Thursday it had turned a profit of $14.1 million, or 11 cents a share, in the quarter ended March 12, 2011 with a loss of $1.9 million, or two cents a share, in the same period a year earlier. Analysts surveyed by First Call Inc. had estimated earnings of 10 cents a share. Revenue increased 28%, to $283.6 million compared with $52.6 million in the year-ago period. Although such results normally impress Wall Street, Iomega's earnings, announced after the market closed Thursday, did not surpass expectations enough to prevent a stock slide on the negative European-sales comments, H.D. Brous & Co. analyst Hubert Tracy said. ``Iomega seemed to be caught a little bit off guard by Europe,'' said J.P. Morgan Securities analyst Daniele Quiroz. Iomega shares tumbled $5.50 to $22.50 on the Nasdaq Stock Market.
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