Guitar Center Slashes Forecast for 3rd Quarter

Musical instrument retailer Guitar Center Inc. forecast a shortfall in third-quarter results, citing softer-than-expected sales and higher expenses. Its stock tumbled in after-hours trading.

The Westlake Village-based company also forecast results for the current quarter to be below Wall Street’s estimates.

Guitar Center said it now expected third-quarter net income of $10.6 million to $11.3 million, or 36 to 38 cents a share, with sales of $473 million.

The retailer’s previous forecast was for third-quarter net income at the low end of a range of $12 million to $13.8 million, or 40 to 46 cents a share, on sales of $489 million to $501 million.

Analysts on average had projected profit of 43 cents a share.

Guitar Center released its forecast after the close of regular stock trading, during which its shares rose 34 cents to $45.63. They slid to $41.60 in late trading.