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March 06, 1998 11:51 AM
PRT Group Shares Plunge Amid News Company Expects 1st-Quarter Loss
NEW YORK -(Dow Jones)- PRT Group Inc. shares
fell nearly 50% to a new low in early trading Friday,
after the provider of information-technology software
said it will report a first-quarter loss of $3 million on
increased expenses.
Late Friday morning, the shares were at $10, down
$9.125, or 47.7%; they had been as low as $9.75.
Nasdaq volume was 3.8 million shares, more than 24
times the daily average of 156,000.
The company, which went public in November of 1997,
said it also expects first-quarter revenue to be less than
the $19.8 million taken in during the fourth quarter. PRT
Group (PRTG) cited customer delays in the start-up of
new projects and changes in ramp-up plans for existing
projects.
Tarun Chandra, an analyst at Punk Ziegel & Co., said
the earnings revision means the company will post a
first-quarter loss of about 16 cents a share, as opposed
to the profit of nine cents a share that his firm had
anticipated.
Accordingly, the analyst said he is lowering his rating on
PRT Group stock to "market performer" from "buy."
A First Call survey of four analysts covering PRT Group
had put the company's first-quarter net income at eight
cents a share.
Company officials weren't immediately available for
comment.
-Justin A. Oppelaar; 201-938-5175
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