Telecommunications provider Teleglobe Inc. (NYSE: TGO) shed 5 1/4, or 20 percent, to 21 1/2 Thursday, one day after warning that it second-quarter and year-end earnings would fall short of expectations.
CS First Boston, Deutsche Banc Alex. Brown, HSBC Securities and Merrill Lynch all cut the stock on the news.
Company officials blamed pricing pressure in the North American long-distance market and losses on the conversion of foreign currencies for the earnings shortfall.
First Call consensus was expecting a profit of 13 cents a share in its second quarter and 84 cents a share for the fiscal year.
Teleglobe officials now expect earnings of 10 cents and 70 cents a share, respectively.
Its shares moved up to a 52-week high of 40 15/16 in January after falling to a low of 18 15/16 in October.
Prior to Wednesday's profit warning, all 11 analysts following the stock rate it either a "buy" or "strong buy."
Most of Thursday's downgrades were from a "buy" recommendation to a "hold" though Deutsche Banc Alex. Brown cut it from a "strong buy" to a "buy.">
Discuss: Teleglobe shares wilt on profit warning
Be respectful, keep it civil and stay on topic. We delete comments that violate our policy, which we encourage you to read. Discussion threads can be closed at any time at our discretion.