Dougherty & Co Cuts Price Target on Constant Contact (CTCT), Disappointing Outlook
Tweet
Share
E-mailGet Alerts CTCT Hot Sheet
Price: $32.01 --0%
Rating Summary:
2 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
2 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Join SI Premium – FREE
Dougherty & Co is maintaining its Neutral rating on shares of Constant Contact (NASDAQ: CTCT) while reducing its price target from $28 to $18.
The company reported weak Q2 revenue results with $52.5 million, $73 thousand below the lower end of its previous Q2 sales guidance and $300 thousand below the firms estimate. EPS of $0.15 topped the firms estimate by $0.04.
Net adds were disappointing once again as total net adds have declined 22 percent year-over-year.
CTCT released its Q3 guidance with a non-GAAP EPS range of $0.21-$0.23 and revenue range of $54.2-$54.7 million, these figures were below what the consensus was forecasting. The company also tweaked its fiscal 2011 non-GAAP EPS guidance from $0.60-$0.65 to $0.63-$0.65. Its revenue guidance was lowered by $3 million to $214-$216 million.
The firm tweaked its FY11 and FY12 EPS estimates from $0.62 and $0.89 to $0.61 and $0.92. It also lowered its FY11 and FY12 revenues estimates from $216.1 million and $263.3 million to $213.3 million and $256.8 million.
An analyst at Dougherty & Co comments, "As results indicate, conversion continues to suffer. The company, however, blamed ARPU for the revenue shortfall. ARPU increased $0.40 sequentially to $37.86, which was the second-best sequential increase over the last four years. The company indicated that lower-than-expected ARPU growth contributed to $400,000 reduction, or $0.29/subscriber, in potential revenue in the Q2."
For more ratings news on Constant Contact click here and for the rating history of Constant Contact click here.
Shares of Constant Contact closed at $18.93 yesterday.
The company reported weak Q2 revenue results with $52.5 million, $73 thousand below the lower end of its previous Q2 sales guidance and $300 thousand below the firms estimate. EPS of $0.15 topped the firms estimate by $0.04.
Net adds were disappointing once again as total net adds have declined 22 percent year-over-year.
CTCT released its Q3 guidance with a non-GAAP EPS range of $0.21-$0.23 and revenue range of $54.2-$54.7 million, these figures were below what the consensus was forecasting. The company also tweaked its fiscal 2011 non-GAAP EPS guidance from $0.60-$0.65 to $0.63-$0.65. Its revenue guidance was lowered by $3 million to $214-$216 million.
The firm tweaked its FY11 and FY12 EPS estimates from $0.62 and $0.89 to $0.61 and $0.92. It also lowered its FY11 and FY12 revenues estimates from $216.1 million and $263.3 million to $213.3 million and $256.8 million.
An analyst at Dougherty & Co comments, "As results indicate, conversion continues to suffer. The company, however, blamed ARPU for the revenue shortfall. ARPU increased $0.40 sequentially to $37.86, which was the second-best sequential increase over the last four years. The company indicated that lower-than-expected ARPU growth contributed to $400,000 reduction, or $0.29/subscriber, in potential revenue in the Q2."
For more ratings news on Constant Contact click here and for the rating history of Constant Contact click here.
Shares of Constant Contact closed at $18.93 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Barclays Downgrades Renault SA (RNO:FP) (RNSDF) to Equalweight
- Jefferies Upgrades Fortescue Metals Group Ltd. (FMG:AU) (FSUGY) to Hold
- Marti Technologies (MRT) PT Raised to $6 at Benchmark on Stronger Growth, Improved Earnings Visibility
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
