EDS - Recent pullback a buy opportunity??? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : EDS - Recent pullback a buy opportunity???

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Daniel G. DeBusschere who wrote (1587)	6/12/2000 3:01:00 PM
From: Daniel G. DeBusschere	Read Replies (1) of 1841

For those lurkers who are trying to figure out what's up - Here's the material portion of the EDS press release on the "early warning" on 06/09/00 - ******************** PLANO, Texas -- EDS (NYSE:EDS) announced today that revenues for its second quarter will be softer than expected and will be in the low single digits. This is a change from previous expectations of growth rates, which were estimated to be in the mid-single digits. The company believes this is a temporary softening in revenue and is confident about its ability to grow. As EDS has already stated, revenue growth will pick up and then continue to improve in the second half of the year. The company also reported it remains confident that it will meet analysts' consensus expectations for the current quarter and full year 2000 earnings per share targets. The company continues to realize cost savings and productivity improvements consistent with its plan. ************************ It's a "top line" warning not a "bottom line" warning. Frankly, I would be more concerned about a "bottom line" warning. The argument that the revenues are down because the ramp up on new business is slower than expected is a reasonable excuse in the full service outsourcing business. The order backlog indicates that the revenue is there - it's not a matter of not selling business - it's in the execution and sometimes this is driven by customers and is not totally under EDS project management control.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next