Blackboard Q4 Revs, EPS In Line; But Q1, ‘08 EPS Guidance Fall Far Short; Stock Drops 8.5% After Hours
Blackboard (BBBB), provider of software to the education sector, reported fourth quarter revenue of $63.2 million, with non-GAAP EPS of 25 cents, a bit ahead of the Street at $62.6 million and 24 cents.
But the big story here is much-lower-than-expected guidance for the first quarter and all of 2008. For the first quarter, the company sees revenue of $64 million to $66 million, versus Street expectations of $64.6 million. On a non-GAAP basis, Blackboard expects a loss of 2 cents a share to a profit of one penny. The consensus view had been for a profit of 20 cents.
For the full year, the company sees revenue of $306 million to $314 million, ahead of the Street at $281.4 million. But Blackboard sees EPS of 58-68 cents, far short of the Street view of 96 cents.
In after hours trading, Blackboard fell $2.91, or 8.5%, to $31.30, adding to a loss of 71 cents in the regular session.
any reasons as to why the EPS and revenue guidance appear contrasting to the consensus estimates?
Acquisition related writeoffs/charges. Ex those the number was in-line.
It is obviuous that the EPS can be lower than forecasted, but this company is investin by acquisitions, strehghtening its position in a growing market. Isn’t it a good share to buy now for a mid term strategy?
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
