Full article
is available for a fee
Randall S. Newton, July 16, 2007
PTC told Wall Street on Thursday, July 5 that its previous earning
guidance was wrong, and revised estimates down $10 million for the
quarter. The next day Wall Street sent PTC a message; as TheStreet.com
put it, “Parametric Tanks on Warning.” PTC stock closed at 17.23, down
20.12% in one day.
In the announcement, PTC (NASDAQ: PMTC) said it expects revenue for
the fiscal 2007 third quarter ended June 30, 2007 to be approximately
$225 million, compared with previous guidance of $235 million to $240
million. PTC said lower-than-expected license revenue was the primary
reason for the shortfall.
“Having met or exceeded our guidance for the past 15 consecutive
quarters, I am disappointed that our revenue and earnings results will
be below our expectations for the third quarter,” said C. Richard
Harrison, president and chief executive officer.
Wall Street analysts who cover PTC were quick to offer their
assessment. Typical was the word from Goldman Sachs analyst Sasa Zorovic
who downgraded the stock to “Neutral” from “Buy,” reducing his price
target to $20 from $24.
Based on preliminary third quarter license revenue results, PTC
anticipates that it will lower its fourth quarter and fiscal year 2007
revenue and earnings guidance. The company will discuss detailed third
quarter results and offer revised guidance during its third quarter
earnings announcement, scheduled for July 25, 2007.
Read more...
The
full article is available for a fee at CADCAMNet. More Select Pro/ENGINEER Articles
