Overview
- Third-quarter adjusted EPS was $1.71, matching consensus expectations.
- Revenue fell 3.4% year over year to $512.8 million, topping the Street’s $503.6 million estimate.
- Gross margin declined 200 basis points to 46.9% as higher tariffs and inventory obsolescence effects weighed on profitability.
- Fiscal 2026 adjusted EPS guidance was lowered to $3.25–$3.75 from $3.75–$4.25, and sales guidance was narrowed to $1.758–$1.773 billion, roughly in line with consensus.
- Shares dropped about 12% to $18.50 after the report, as cash fell to $27.1 million, inventory rose to $505.3 million including $35 million in tariff costs, and total debt increased to $892.4 million.