CIBC Raises Opinion on I2 Technologies
I2 Technologies (ITWO ) posted second quarter earnings per share (GAAP basis) of $1.66. CIBC raised its investment rating on the shares to sector perform from sector underperform.
Analyst Brad Reback says the company's second quarter report showed evidence that its recent restructuring has taken hold, resulting in expenses falling well below revenues for first time in years. Reback says that with I2's debt gap almost closed, and expenses in line, the worst appears to be behind the company. He notes that second quarter adjusted EPS totaled $1.07, revenues were $98.6 million, up from his estimates of a 25-cent loss and $72.2 million in revenue. Reback cites better-than- expected development service and license revenue.
The analyst raised his 21-cent third-quarter loss estimate to earnings per share of 50 cents on $83 million in revenue, his $1.98 2005 loss estimate to 89 cents EPS on $297 million in revenue, and his 23 cents 2006 loss estimate to $1.24 EPS on $327 million in revenue.