Aquantia’s 4Q earnings miss Street estimates due to challenging data center end-market conditions

Aquantia Corp (NYSE:AQ) which operates in the semiconductor industry posted wider than expected losses in the fourth quarter due to the challenging data center end-market conditions.

For the quarter ended December 2018, the San Jose, California-based company posted a loss of $0.09 per share on revenue of $29.1 million. The consensus earnings estimate was $0.01 per share on revenue of $33.6 million. Revenue grew 4.5% on a year-over-year basis.

Encouraged by growth prospects​

The company said it expects first-quarter revenue of $19.0 million to $21.0 million. The current consensus revenue estimate is $33.6 million for the quarter ending March 31, 2019.

“We are certainly disappointed in our fourth quarter results and outlook for the first quarter of 2019 due to the challenging data center end-market conditions,” said Aquantia Corp CEO Faraj Aalaei in a statement.

Aalaei, however, said the company nevertheless was “encouraged by the growth prospects” of its enterprise infrastructure and access businesses in 2019.

Aquantia designs and markets advanced high-speed communication integrated circuits for Ethernet connectivity in the data center, enterprise infrastructure, and access markets worldwide.

Aquantia stock fell 23.9% to $7.54.

Contact Uttara Choudhury at [email protected]

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Story by ProactiveInvestors