NII Holding's Shares Continue To Slide
Shares of NII Holdings Inc., a Reston wireless service provider to Latin American businesses, reduced its 2009 subscriber growth forecast Monday, sending shares sharply lower.
The stock fell 18 percent Monday, and are down another 6 percent in morning trading.
The Associated Press reported that the company said it now expects the number of its subscribers to grow by 1.1 million to 1.2 million, down from its earlier estimate of roughly 1.3 million to nearly 1.4 million net subscriber additions for the year.
NII also said it added 266,000 net subscribers in the first quarter, below company expectations because of the weak economy, particularly in Mexico.
Stifel Nicolaus analyst Christopher King attributed all of the shortfall to Mexico and Argentina.
"We believe that subscriber growth trends in Mexico in particular, have slowed dramatically over the last 4-6 weeks," the analyst wrote in a note to investors. The company's stronger markets include Brazil and Peru.
King rates NII "Buy."
NII plans to report its first-quarter results on April 23.
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