REPORT!
Data Domain shares plunge after 4Q earnings
Data Domain shares plunge after 4Q earnings miss estimates, despite growing sales
* Friday January 30, 2009, 4:21 pm EST
* Yahoo! Buzz
* Print
Related:
* Data Domain, Inc.
NEW YORK (AP) -- Data Domain Inc., a company that provides data backup and disaster recovery systems, saw shares dive Friday after its fourth-quarter earnings missed estimates.
Related Quotes
Symbol Price Change
DDUP 13.02 -6.11
Chart for Data Domain, Inc.
{"s" : "ddup","k" : "c10,l10,p20,t10","o" : "","j" : ""}
The company posted earnings of $13.9 million, or 21 cents per share, compared with a loss of $76,000, or break-even per share, in the same quarter a year ago.
But that figure included a $5.7 million deferred tax benefit. Excluding one-time items, Data Domain said its profit came to 10 cents per share.
Sales grew 90 percent to $85.2 million from 44.9 million.
Morgan Keegan & Co. analyst Brian Freed told investors in a note he was expecting 11 cents per share, compared to a Street consensus of 12 cents. His estimate for sales was $83 million.
Analysts typically exclude one-time items.
The company's first-quarter guidance, calling for adjusted earnings of 4 cents to 7 cents per share on revenue of $79 million to $84 million, also missed his estimate.
Freed was looking for 12 cents per share on $85.5 million, with the Street average at 13 cents per share and $84.8 million.
He reiterated a "Market Perform" rating on shares.
JMP Securities analyst Peter Bussi reiterated the same rating, telling clients, "We believe the company is going to face an increasingly brutal competitive landscape and tougher environment for its high-end" products.
Data Domain shares tumbled $6.11, or 32 percent, to close at $13.02. The day's low of $12.80 was a new 52-week low. |
