Baird Downgrades TeleTech Holdings
Baird downgrades customer support call center company TeleTech Holdings (TTEC ) to neutral from outperform.
Analyst Mark Bacurin says the company's first quarter was weak and guidance was lower.
He notes the following negative takeaways: revenue growth was below forecast across all segments, core North American revenue was down on loss of client programs, and further revenue declines, contract implementation delays at Newgen drove segment to a loss
Bacurin also notes international business appears to be making very little progress toward improving margins/profitability, and second-quarter revenue and profitability is expected to be consistent with weak first-quarter results.
He cuts his 2005 operating earnings per share estimate to 25 cents, his 2006 earnings per share estimate to 50 cents, and his $14 target to $11.
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