Harmonic's Stock Falls After Revenue Outlook Slashed

Harmonic Inc.'s stock dropped 4.9% in premarket trade Thursday, after the video-delivery infrastructure company lowered its third-quarter revenue outlook. The company now expects revenue in the range of $81 million to $84 million, down from a previous forecast of $92 million to $102 million, according to FactSet. The average estimate of analysts surveyed by FactSet is $99.2 million. The company said it expects the factors that weighed on third-quarter results to extend into the fourth quarter. "Several market factors continue to hamper near-term customer investment decisions; service provider consolidation, particularly within the U.S. and EMEA regions, and the pending release of our new cable edge architecture in mid-2016 amplified the effect," said Chief Executive Patrick Harshman. The stock has lost 10% year to date through Wednesday, while the S&P 500 has slipped 3.1%.