Manugistics stock up ahead of earnings report next week
NEW YORK, March 20 (Reuters) - Shares of software vendor Manugistics Inc. <MANU.O> rose 8 percent on Tuesday ahead of the company's fourth-quarter earnings report due next week, which Manugistics has said will meet analysts' expectations.
Most analysts attributed the rise in the stock to the fact that the software vendor earlier this month affirmed its previous guidance for the fourth quarter, citing strong demand for its software.
"Manugistics pre-announced that it's going to hit its quarter which gives people a bit more comfort about owning the stock," said Pawan Malhotra, an analyst with brokerage firm S.G Cowen Securities. "My guess is that you've got a combination of bounce-back in the market and people trying to buy ahead of next Monday's earnings release."
Shares in Rockville, Md.-based Manugistics, which makes software that helps companies better manage their inventory and purchasing systems, rose $1-13/16 to $23-11/16.
Manugistics' affirmation came against a backdrop of warnings by software firms, led by software giant Oracle Corp. <ORCL.O>, that they would miss analysts' expectations in their quarterly earnings.
"A lot of people are nervous because a lot of these software companies' quarters end in March and there's a good chance they'll miss their numbers", said Mark Verbeck, an analyst with Epoch Partners. "So if you want to play the market and pick up someone that you know isn't going to miss their numbers, Manugistics is a good way to do it."
Wall Street analysts on average are expecting Manugistics to earn 5 cents per share in its fiscal fourth quarter, which ended on February 28, compared with a loss of 2 cents per share a year earlier, according to First Call/Thomson Financial. The company is seen reporting revenues of $81.3 million compared with $43.7 million a year ago, according to First Call.
18:21 03-20-01 |
