PSFT ($16-$17)..PE=29...beats by 2 cents..
17-Oct-02
16:17 ET PeopleSoft beats by $0.02 (PSFT) 16.36 +1.51: Reports Q3 earnings of $0.14 per share, $0.02 better than the Multex consensus. Revs fell 9.5% to $471.2 mln (consensus $469.76 mln).
17-Oct-02
17:24 ET PeopleSoft guides Q4 in-line to slightly higher (PSFT) 16.36 +1.51: -- Update -- On call, says it expects Q4 EPS of $0.14-0.15 (Multex consensus $0.14) and license revenue to increase to $125-135 mln... guidance was prefaced by remark that it is still very challenging to make predictions... PSFT +0.84 at 17.20
Associated Press
PeopleSoft Optimistic on 4Q Earnings
PeopleSoft 3Q Earnings Are 11 Pct. Lower but 4Q Profits Seen Topping Estimates
Thursday October 17, 8:45 pm ET
By MARK BOSLET, Dow Jones Newswires
PALO ALTO, Calif. (AP) -- PeopleSoft Inc. reported third-quarter net income that was 11 percent lower, but the software maker said Thursday that fourth-quarter earnings could top analysts estimates, and its share rose modestly in after-hours trading.
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The maker of business software for customer-service desks and human-relations departments posted third-quarter net earnings of $44.6 million, or 14 cents a share, compared with $50.3 million, or 17 cents a share, a year ago.
The results from the year-earlier quarter included one-time items. Wall Street analysts had projected 13 cents for this year's period, according to Thomson First Call.
Reported revenue was down 9.5 percent at $471 million, compared with $520 million last year. Analysts had been expecting $469 million.
"PeopleSoft ranks near the top for performing in a bad market," said analyst David Hilal of Friedman Billings Ramsey, who called the quarter "solid."
On a conference call with analysts, PeopleSoft chief financial officer Kevin Parker said fourth-quarter earnings should be 14 cents to 15 cents a share. Analysts had been expecting 14 cents.
Parker also projected license revenue of $125 million to $135 million, compared with $121.6 million in the third quarter. He said he expected corporations to have a "modest budget flush" during the period, meaning that there would be some benefit from buyers who either use or lose their 2002 spending allocations.
PeopleSoft chief executive Craig Conway said he believed the company was gaining market share as it introduced 35 new products this year. The company also saw its operating margin improve to 13.3 percent in the third quarter from 12.4 percent in the second quarter.
But while PeopleSoft offered a bullish picture of its business, it also colored the canvas with caution. "It is still a very unpredictable environment," said Phil Wilmington, executive vice president. "We don't see any strong improvement or changes. It is challenging."
PeopleSoft shares rose more than 10 percent, or $1.51, to close at $16.36 on the Nasdaq Stock Market. They gained another 94 cents in late trading.
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