GenRad "comfortable" with '98 EPS estimates
(Thursday June 11, 6:22 pm Eastern Time)
WESTFORD, Mass., June 11 (Reuters) - GenRad Inc. warned
Wall Street on Thursday that although it expects demand for its
products to be mixed, the company is ''comfortable'' with
expectations for 1998 earnings per share of $0.80 to $1.00,
excluding a one-time charge in the second quarter.
The First Call consensus forecast of analysts' estimates predicts
earnings of $0.80 per share this year.
GenRad also said it believes earnings per share of $1.50 to $1.75
will be ''attainable'' in 1999.
The First Call forecast predicts 1999 earnings of $1.06 per share
next year.
GenRad also said it had set a stock buyback plan of up to 2.5
million shares or about 8 percent of outstanding shares.
''At current market prices, GenRad stock is more attractive than
acquisition opportunities we are currently evaluating,'' the company
said in a statement.
This and other initiatives will result in one-time charges in the
second quarter that will total about $40 million, GenRad said. One
of the charges is to pay for a 10 percent cut in the work force at a
newly acquired company, the statement noted.
''The company's outlook for 1998 is cautious, given a softening of
demand for electronic manufacturing systems board test products in
the personal computer, peripherals and contract electronic
manufacturing end markets,'' GenRad's President James Lyons said
in the statement.
However, the company said it sees sales growth elsewhere.
''I believe we have the infrastructure in place to support
double-digit sales and earnings-per-share growth over the next two
years,'' Lyons added.
GenRad provides hardware, software, inspection systems, and
services to optimize design, manufacturing, and after-market
service productivity. |
