Harmonic Inc. (HLIT) saw its shares plummet over 20% in after-hours trading on Monday, despite reporting better-than-expected fourth-quarter 2024 earnings and revenue. The steep sell-off was triggered by the company's guidance for 2025, which fell short of analysts' expectations.

For the fourth quarter of 2024, Harmonic posted adjusted earnings of $0.45 per share, surpassing the consensus estimate of $0.37. Revenue rose 33% year-over-year to $222.2 million, beating forecasts of $213.5 million. The strong performance was driven by robust demand for the company's broadband and video solutions, with the broadband segment revenue soaring 48% to $171 million.

However, Harmonic's outlook for 2025 disappointed investors. The company expects adjusted earnings per share of $0.43 to $0.68 on revenue of $585 million to $645 million. While the earnings guidance was in line with expectations, the revenue outlook fell short of analysts' projections of $727.4 million.

Harmonic attributed the lackluster revenue guidance to expected shifts in customer deployment timing as operators transition to next-generation broadband technologies like DOCSIS 4.0. The company remains confident in its long-term prospects, citing ongoing demand for broadband and video solutions, but investors appeared skeptical about the near-term outlook.

In a bid to boost shareholder value, Harmonic announced a new $200 million share repurchase program, reflecting confidence in its future profitability and cash flow generation. However, this move failed to alleviate investors' concerns, leading to the steep sell-off in after-hours trading.