CTS, a leading manufacturer of electronic components for wireless applications, warned Wednesday that it will fall well short of analysts' sales and earnings estimates in the first quarter and fiscal 2001.
CTS (NYSE: CTS) executives warned investors that it expects sales in the first quarter to fall between 7 percent and 12 percent from the year-ago quarter. It now expects to earn between 4 cents and 8 cents a share in the quarter.
First Call Corp. consensus was expecting a profit of 67 cents a share in the quarter.
Company executives said sluggish sales to communications, automotive and computer customers will result in lower-than-expected sales and earnings for the fiscal year.
It now expects to earn between $2.10 a share and $2.40 a share in the fiscal year on sales roughly on par with the $866.5 million it recorded in fiscal 2000.
Analysts were predicting fiscal 2001 earnings of $3.20 a share.
"We are taking the necessary actions to mitigate the economic slowdown's impact, aggressively attacking the issues within our control, such as costs and expenses," said Chief Executive Officer Joseph Walker in a prepared release. "Even if current market and economic conditions prevail, neither improving nor deteriorating, we expect subsequent quarters to improve in revenue generation and profitability from the first-quarter levels."
Last quarter, CTS pocketed $22.8 million, or 79 cents a share, on sales of $233.4 million.
Its shares closed off 10 cents to $37.90 ahead of the profit warning.
The stock peaked at $68 in May before falling to a 52-week low of $31.50 in December.
All four analysts tracking the stock rate it either a "buy" or "strong buy."