CE Unterberg downgraded BEA Systems (BEAS ) to short-term market perform.
Analyst Katherine Egbert says she downgraded from short-term buy as third-quarter license revenue and fourth-quarter guidance -- especially revenue -- was below expectations . She notes the market expected a strong third-quarter on the back of a new product cycle; the weakness shows sales are drawn out longer than she anticipated.
Egbert says valuation is expensive. She sees 9 cents fourth-quarter earnings per share, and trimmed the 36 cents fiscal 2005 (Jan.) estimate to 34 cents.