Hot Stocks: Sapient Shares Fall 20 11/16greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
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Fri, 28 Jan 2000, 2:37pm EST
Sapient Shares Fall as 4th-Qtr Earnings Fail to Beat Estimates
By Michael Lovell
Cambridge, Massachusetts, Jan. 28 (Bloomberg) -- Sapient Corp.'s shares fell as much as 20 percent after the company's fourth-quarter earnings failed to beat expectations, following a doubling of its shares over the past three months.
The shares of Sapient, which helps companies build software and Internet systems, fell 20 11/16 to 98 13/16 in late morning trading. Earlier, they touched 96.
Sapient reported after the market's close yesterday that fourth-quarter pro forma net income, excluding costs associated with the acquisition of E-Lab LLC in October, rose to $10.5 million, or 16 cents a share, from $5.98 million, or 10 cents, a year earlier. That matched the average estimate of analysts polled by First Call/Thomson Financial.
``Although the quarter was good, my guess is it didn't meet some of the expectations people had for it, given the tremendous run-up it has had,'' said Wayne Segal, an analyst with Credit Suisse First Boston.
Including costs of the acquisition, net income rose more than eightfold to $9.47 million, or 14 cents a share, from $1.15 million, or 2 cents, a year earlier. Revenue rose 52 percent to $81.8 million from $53.8 million.
The company's shares have more than doubled since Oct. 21, when it reported third-quarter profit of 29 cents a share, slightly higher than the 28-cent average estimate of analysts polled by First Call. That day, Sapient also announced a 2-for-1 stock split and said demand for its electronic-commerce services is rising.
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