WR Hambrecht downgrades eFunds Corp. (EFDS) shares to neutral from buy. On Friday, the company forecast lower than expected $0.20-$0.23 fourth quarter EPS on $127-$130 million in revenue.
Analyst Stephen Laws says the downgrade is based on the company's reduced guidance, which reflects lower than expected software sales, lengthening sales cycles, and delayed purchasing decisions. He notes these factors stem from the current economic environment.
During the company's fourth quarter conference call on Jan. 30, and the company's conference on Feb. 14, he expects it to provide updated 2002 guidance and updates on the delayed purchases that have been pushed into early 2002.