Wall Street Throws In The Towel On Focus Media (FMCN) After Results and Guidance; Stock In Free-Fall

Shares of Chinese digital media company Focus Media Holding Ltd. (Nasdaq: FMCN) are down 43% this morning after reporting disappointing Q3 results and guidance.

Focus Media reported Q3 EPS of $0.53, versus the consensus of $0.57. Revenues rose 63.7% to $224.8 million, below the consensus of $248.4 million.

For Q4, Focus Media sees EPS of $0.45-$0.46, versus the consensus of $0.57 and revenues of $190-$200 million, versus the consensus of $248.5 million.

At least four Wall Street firms downgraded Focus Media following the results: Goldman Sachs, Citi, Susquehanna and Oppenheimer.

Susquehanna said Focus is facing strong headwinds from the worsening macro economy in China, as well as global financial crisis. They expect more bad news to hit Focus's growth in CY09. Susquehanna cut its rating from Positive to Neutral.

Citi said near-term visibility in the current environment has diminished and advertiser demand is uncertain. Citi cut their rating from Buy to Hold.

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