Superior TeleCom Inc. (NYSE: SUT) gave its investors some bad news late Wednesday, warning that it would fall woefully short of analysts' sales and earnings expectations in its third quarter.
Company officials said the maker of copper wire and cable used for telecommunications networks, will post a profit of only 52 cents to 58 cents a share in the quarter.
Its shares closed off 3/4 to 25 3/4 ahead of the profit warning.
First Call consensus pegged it for a profit of 88 cents a share in the quarter.
In the year-ago quarter, it returned a profit of 59 cents a share.
The company said the lowered projections were based upon lower-than-planned shipments of communications exchange cable to telephone company customers and reduced building wire margins during July 1999.
It also said it will make between $2.35 a share to $2.51 a share, 10 to 19 percent higher than last year, but lower than the 3.00 to $3.07 a share analysts expected.
Superior Telecom said that improved pricing during the past six weeks and $10 million in savings it anticipates from the previously announced closing of three Midwest electrical wire manufacturing plants should improve operating margins and profits from this business segment in the latter stages of 1999 and into 2000.
The stock peaked at 40 11/16 last September before falling to a low of 16 in March.
All three analysts following the stock maintain either a "buy" or "strong buy" recommendation.>