CS First Boston Boosts Outlook on WebMethods

Analyst John Rizzuto says the maker of infrastructure software beat his estimates

CS First Boston raised its estimates and target on WebMethods (WEBM ).

Analyst John Rizzuto says Q3 was spectacular, with a $0.05 loss and $49.1 million revenue exceeding his $0.20 loss and $40.5 million revenue estimates, as well as beating the consensus $0.17 loss on $41.6 million revenue. Rizzuto notes sequential revenue growth across all geographies and continued expense reductions. He says the company also saw leverage from its vast partnership relationships. Rizzuto narrowed his $0.16 Q4 loss estimate to a $0.05 loss, and trimmed the $0.61 fiscal 2002 (March) loss to a $0.36 loss. He also revised his $0.11 fiscal 2003 loss to $0.12 EPS. Finally, Rizzuto raised his $23 12-month target to $29 and reiterates his buy rating.

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