BE Inc. saw its stock plummet 28% last week following a disappointing quarterly report that revealed revenue below expectations and a revised full-year outlook. The company cited supply chain delays and weakening consumer demand as key factors behind the downturn.
- BE Inc. stock fell 28% in one week following weak earnings
- Q4 revenue of $1.42 billion missed estimate of $1.51 billion
- Full-year revenue guidance lowered to $5.8B–$5.9B, down from $6.2B forecast
- Supply chain delays and soft consumer demand cited as primary causes
- Operating income declined 17% YoY despite margin resilience
- Multiple analysts downgraded stock to 'Hold' amid renewed growth concerns
BE Inc. experienced a sharp decline in its share price, falling 28% over the course of the week, as investors reacted to the company’s latest earnings release. The drop followed the announcement of adjusted quarterly revenue of $1.42 billion, missing analysts’ consensus estimate of $1.51 billion by 6%. This marks the first revenue shortfall in over two years and signals a potential shift in the company’s growth trajectory. The company attributed the shortfall to prolonged disruptions in its Asia-based manufacturing network, which delayed the launch of several key product lines. Additionally, BE revised its full-year revenue guidance downward to a range of $5.8 billion to $5.9 billion, down from the prior forecast of $6.2 billion. The updated outlook reflects expectations of continued softness in the consumer electronics segment, particularly in its premium smart device category. Despite maintaining a positive gross margin of 42%—slightly above the prior quarter—investors focused on the erosion of growth momentum. The company’s operating income declined by 17% year-over-year, driven by increased R&D spending and higher logistics costs. BE also reported a $143 million non-cash impairment charge related to underperforming inventory from a discontinued product line. Market analysts have begun reevaluating the company’s valuation, with several downgrading their ratings from 'Buy' to 'Hold'. The broader technology sector saw modest declines, particularly in consumer-facing tech stocks, as the news raised concerns about demand saturation in the mid-tier smart device market.