By Colin Kellaher
Shares of Rada Electronic Industries Ltd. fell more than 10% in premarket trading Wednesday after the provider of tactical radars said its second-quarter revenue would fall well short of expectations.
The Netanya, Israel, company said it expects to report quarterly revenue of about $22.5 million to $59.4 million, well below the $85 million to $95 million it forecast in May and the $88.5 million analysts polled by FactSet, on average, were expecting.
Rada said it is still feeling the effects of the U.S. budget delay and the resulting U.S. continuing-resolution pause earlier this year, with orders coming slower than originally planned.
The company, which last month agreed to be acquired by a unit of Italy's Leonardo SpA, said it is pulling its full-year revenue guidance in light of the pending deal.
Rada shares, which closed Tuesday at $9.04, were recently down 10.4% to $8.10 in premarket trading.
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires