Wyle Stock Falls as Firm Warns of Drop in Earnings
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IRVINE — Wyle Electronics shares dropped 13% Tuesday after the company said first-quarter earnings will fall below year-earlier levels as it switches to new products.
The stock fell $5 to $33.375 per share in active trading on the New York Stock Exchange. Nearly 411,000 shares changed hands, more than 10 times the average daily volume.
Wyle, which provides electronics equipment, said first-quarter earnings will fall 15% to 20% below fourth-quarter earnings of $9.5 million, or 74 cents a share. In the first quarter last year, the company earned $11 million, or 86 cents a share, and analysts were expecting earnings of about 75 cents a share in the first three months this year.
Wyle blamed the setback on phasing out two distribution agreements.
The announcement marks the second time in six months that Wyle warned investors of disappointing results. In September, Wyle said third-quarter earnings would fall from year-earlier results because of slowing semiconductor orders.
