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.

To contact the reporter on this story: Peter J. Brennan in Los Angeles at

To contact the editor responsible for this story: Colleen McElroy at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.