Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

JP Morgan Downgrades Documentum


Documentum (DCTM) sees a weaker than expected $68 million in second-quarter revenues, and earnings per share on a GAAP basis of one cent. JP Morgan downgraded its investment rating on the shares to neutral from overweight.

Analyst Sterling Auty tells Standard & Poor's MarketScope the second-quarter revenue shortfall came from delays in government contracts, the soft economy, and weakness in Northern Asia. He says this not a bad miss overall, but the stock is unlikely to outperform until Documentum can show better license growth. Therefore, he downgraded the shares. Meanwhile, Auty says margin expansion continues; non-GAAP earnings per share is still seen at 7 cents to 9 cents, meaning the company saved about $2 million more than he expected in the second quarter. The analyst cut his 2003 non-GAAP earnings per share estimate from 38 cents to 33 cents and his $300.8 million revenue forecast to $278.3 million. He also lowered his 2004 forecasts for non-GAAP earnings per share from 60 cents to 50 cents and for revenues from $345.3 million to $315.2 million.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus