PeopleSupport Falls as 2008 Forecast Misses Estimates
PeopleSupport Inc., a provider of business outsourcing with operations in the Philippines, fell 22 percent in extended U.S. trading after the company forecast 2008 earnings that trailed analysts' estimates.
The stock dropped $2.50 to $8.90 as of 4:58 p.m. New York time. Los Angeles-based PeopleSupport said it expects 2008 earnings per share of 47 cents to 58 cents on sales of as much as $170 million, according to a statement. The average estimate of four analysts was 76 cents. Six analysts on average expected sales of $184.4 million.
``The economy is showing signs of weakness,'' Chief Financial Officer Caroline Rook said in the statement. There is a particular slowdown among technology clients, she said.
For the fourth quarter, profit rose to $18.1 million, or 81 cents a share, from $3.96 million, or 18 cents, a year earlier. Profit was bolstered by a gain of $18.2 million on foreign- currency forward contracts. Sales climbed 15 percent to $35.8 million, missing the $36.4 million expected on average by nine analysts.
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