Wachovia cut estimates on Manugistics (MANU).
Analyst Kash Rangan says first quarter guidance fell short of his estimates. He tied the shortfall to the weak economy and poor appetite for stand-alone supply chain management solutions, as well as the lack of urgency from customers to take on large IT projects.
Moreover, he says the company's very strong fourth quarter may have drained its backlog and shrunk its pipeline, thereby setting the stage for a disappointing first quarter.
Rangan notes the company's first quarter guidance implies a $0.26-$0.29 per share loss. Rangan cut the $0.07 fiscal 2003 (Feb.) earnings per share estimate to a $0.84 loss on $288M revenue, and trimmed the $0.28 fiscal 2004 EPS to a $0.23 loss on $329 million revenue. He rates the stock hold.