Gigamon Shares Plummet 30% After Issuing Lower Guidance

Gigamon Inc GIMO shares are trading lower by $12.80 at $31.25 in Wednesday's session.

The catalyst for the 30 percent decline is the announcement that the company has lowered Q4 EPS guidance and FY 2016 EPS by a few cents. Sales also came in lower at $310.3 million to $310.8 million vs. estimates of $318 million.

Obviously, the issue has been priced to perfection as these modest revisions have exerted major selling pressure in the issue.

After a lower open, the issue managed a $0.30 bounce to $33.50 before continuing its move lower. The issue has continued to make new lows for the session with the current one standing at $31. That marks the lowest level for the issue since June 2016, when it bottomed at $30.78.