ARRIS Cuts Q2 Guidance

(RTTNews) - ARRIS Group Inc (ARRS), a provider of media entertainment and data communications solutions, on Friday slashed its earnings and revenue guidance for the second quarter, citing stronger than anticipated headwinds, including various pending industry consolidations and a stronger dollar.

The company now expects second-quarter net earnings of $0.09 to $0.13 per share, adjusted earnings of $0.51 to $0.55 per share and revenues of $1.25 billion to $1.26 billion.

Previously, ARRIS expected net earnings of $0.17 to $0.22 per share, adjusted earnings of $0.53 to $0.58 per share and revenues of $1.27 billion to $1.31 billion.

Analysts polled by Thomson Reuters currently expect ARRIS to report earnings of $0.56 per share on revenues of $1.29 billion for the quarter. Analysts' estimates typically exclude special items.

"The headwinds we faced in the second quarter were stronger than anticipated resulting in the update to our second quarter," said ARRIS Chief Executive Bob Stanzione.

"Our business continues to be impacted by external factors, most notably the various pending industry consolidations and by the strengthening of the US dollar...we anticipate that these factors will continue to impact us in the second half of 2015," added Stanzione.

However, Stanzione said he expects the Pace plc acquisition to help counter some of these industry conditions as a result of anticipated synergies and a more diversified customer base and product portfolio; the company expects to close the Pace acquisition in the fourth quarter of 2015.

ARRIS will release second-quarter financial results after the market close on July 29.

ARRS closed Friday at $30.85, up $0.55 or 1.82%, on the Nasdaq.