Tomahawk, WI 02/21/2014 (BasicsMedia) – Stock of Infoblox Inc (NYSE:BLOX) have shown a very erratic behavior recently. The shares were at a high of $40 in November, 2013 but have now lost some shine to trade at $21.31 at the end of closing on February 20, 2014 a gain on more than 11% over the previous close.

The Reasons For The Fall:

The main reasons for the fall were the downgrades in the earnings estimates. The estimates were revised thrice and that to negatively. The latest estimates put the loss for the full year to $0.36 per share. For the current quarter, it is estimated that the company will lose $0.06 per share. Even for the current quarter there were two negative revisions and one positive revision. Such frequent and negative revisions make investors very jittery. It indicates that the management is not very confident on the company’s performance. It is noteworthy that the revisions happened in the last 30 days.

What Now?

Even after the downgrade in the earnings estimate, the stock still has some positive news. Many analysts feel that Infoblox Inc (NYSE:BLOX) is now priced very attractively and represent a potential for an upside. Goldman Sachs upgraded the company to a ‘buy’ recently. The company has the potential to turn in some very strong performance. It has a small market share in the core DDI market and can expect better performance in this segment. DNS firewall products also can contribute to both revenues and earnings in the future.

According to the preliminary second quarter results announced recently, Infoblox Inc (NYSE:BLOX) expects revenues of $60-$61 million. The company was earlier expecting it to be $65-$66 million. The net loss is expected to be in the range of $0.08 to $0.10 per diluted share on GAAP basis. Non GAAP net income is expected to be in the range of $0.10 to $0.12 per diluted share against earlier expectation of $0.09 to $0.11 per diluted share.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.