Mike, KEA warned today. 280-282 million in revenue and 0.37 eps. Question is, what percentage are these numbers lower than the original forecasts? I would assume the difference is less than the 20% bath kean's taking today. Is kea a strong buy now or a wait and see?
Miklosh
btw sorry I meant to post to the AMB thread
biz.yahoo.com
Keane Revises Revenue and Earnings Estimates for Q2 and Fiscal
Year
Long-Term Outlook Unchanged
BOSTON, June 30 /PRNewswire/ -- Keane, Inc. (Amex: KEA - news), a leading IT consulting firm, today
announced that it expects revenue and earnings per share for the second quarter ending June 30, 1999 and the
remainder of the fiscal year to be below its operating plan. The company attributed the shortfall to a drop-off in its
Year 2000 business as well as recent signs of softness in its non-Year 2000 business.
Revenue for the second quarter is expected to be in the range of $280 million to $282 million, or approximately 6%
above revenue of $266.9 million in the second quarter of 1998. Earnings per share for the second quarter of 1999
are expected to be approximately $0.37 per share, as compared to $0.37 prior to acquisition costs and $0.31 after
such costs in the comparable period in 1998. Keane plans to announce its second quarter financial results on July
15, 1999.
The company also indicated that, based on information currently available, it anticipates revenue for the fiscal year
ending December 31, 1999 to be approximately flat with the $1.1 billion recorded in 1998. Earnings per share for
the year are expected to be in the range of $1.40 to $1.50 per share compared to $1.47 prior to acquisition costs and
$1.33 after such costs for the year ended December 31, 1998.
John F. Keane, Keane's chief executive officer and chairman of the board, commented, ''In June, we began to see
clear indications of a softening in non-Y2K revenues that has caused us to re-evaluate our expectations for the
second quarter and the remainder of 1999. Though Keane's core Plan, Build and Manage business continues to grow
strongly, we now believe that year-over-year revenue growth will be below the 30-35% rate that we have seen for
the last few quarters.
''We believe the slowdown is attributable to increased reluctance to implement new IT projects until all outstanding
Y2K issues are resolved rather than a fundamental shift in the long-term prospects for our business. The outlook for
the IT Services market post-Y2K remains positive and we expect Keane to maintain its leading position within the
industry. Over a three to five year period, we continue to believe that Keane can post average revenue growth of
20-25%, with earnings growth at a slightly faster pace.
''In particular, we are seeing strongest growth coming from Keane's e-Solutions, Application Management
Outsourcing, Customer Relationship Management, and Management Consulting practices,'' Keane concluded. |
