Harmonic Inc. (HLIT) reported impressive results for the fourth quarter of 2024, with earnings and revenue surpassing analysts' expectations. However, the company's outlook for 2025 fell short of market estimates, causing its stock to plummet over 20% in after-hours trading.

In the fourth quarter, Harmonic posted adjusted earnings of $0.45 per share, beating the consensus forecast of $0.37 per share. Revenue soared 33% year-over-year to $222.2 million, exceeding analysts' projections of $213.5 million. The strong performance was driven by robust demand for Harmonic's broadband and video solutions, with the broadband segment revenue surging 48% to $171 million.

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

Harmonic attributed the weaker-than-anticipated revenue guidance to expected shifts in customer deployment timing as telecom operators transition to next-generation broadband technologies like DOCSIS 4.0. The company remains confident in its long-term prospects due to the ongoing demand for broadband and video solutions.

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