SonicWall Shares Slip After Estimate Cut

Shares of the Sunnyvale, Calif.-based company fell 64 cents, or 7.1 percent, to close at $8.44. The stock has traded between $7.50 and $11.53 in the past year.

Lazard Capital Markets analyst Joel Fishbein projects first-quarter income of 4 cents per share for SonicWall, down from a previous estimate of 5 cents per share. He also reduced his sales estimate to the quarter to $54 million from $55 million, and his earnings and revenue expectations for the full year.

Fishbein wrote that following channel checks, "Most of the vendors we spoke with reported that demand for SonicWall's products was consistent with prior quarters; however, a handful of resellers cited early signs of a potential slowdown."

The analyst also said that there may have been more discounting in the first quarter than previous quarters.

However, he said SonicWall could be an attractive buyout candidate for a larger vendor or private equity entity.

Fishbein rates SonicWall at "Hold."