Supply-chain issues impact growth and stock performance

  • Extreme Networks shares drop 17% after warning on 3Q loss and supply-chain pressures
  • Company forecasts third-quarter loss between 50 cents and 55 cents a share
  • President and CEO expects business to normalize in the fourth quarter

Shares of Extreme Networks dropped 17% after the company warned of a third-quarter loss and supply-chain pressures. The maker of network equipment expects a loss between 50 cents and 55 cents a share. President and CEO, Ed Meyercord, stated that the networking industry is still affected by supply chain constraints, leading to lower inventory purchases by distributors and partners. However, Meyercord expects the business to normalize in the fourth quarter, resulting in a more normalized level of revenue and earnings.

Public Companies: Extreme Networks (N/A)
Private Companies:
Key People: Ed Meyercord (President and Chief Executive)

Factuality Level: 7
Justification: The article provides information about Extreme Networks warning about supply-chain issues affecting their third-quarter growth. It includes a quote from the President and Chief Executive of the company. However, the article lacks specific details about the supply-chain issues and does not provide any additional context or analysis. It is a short news brief that presents the information without any apparent bias or opinion.

Noise Level: 3
Justification: The article provides some relevant information about Extreme Networks’ warning on supply-chain issues affecting their growth in the third quarter. However, it lacks in-depth analysis, evidence, and actionable insights. The article is also very short and does not provide much context or background information.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Extreme Networks

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the impact of lingering supply-chain issues on Extreme Networks’ growth in the third quarter. While this is a financial topic, there is no mention of an extreme event or its nature.

Reported publicly: www.marketwatch.com