Barclays Maintains an 'Overweight' on Camelot Information Systems (CIS); 3Q Report Provides Further Detail on FIS Reorganization Process, Business Impacts
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Price: $2.03 --0%
Rating Summary:
0 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 33
Rating Summary:
0 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 33
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Barclays maintains an 'Overweight' on Camelot Information Systems (NYSE: CIS) price target lowered $1 to $6.00.
Barclays analyst says, "CIS reported softer 3Q results, with revenue about 4% lower and EPS about $0.06 lower than expectations, and reduced full-year guidance due to impacts from the ongoing FIS reorganization. After initial softness in trading, the stock turned around to outperform the market by the close (up 9% vs. S&P 500 up 3.6%), which we suspect relates to greater comfort/relief in being able to isolate and understand the business challenge: In our view, management was incrementally more direct/clear in
discussing the revenue and margin constraints that emerged from the loss of 150 employees in the Agree subsidiary, and the difficulty management had anticipating near-term productivity losses that would continue through year-end (as management and staff have needed to devote considerable attention to re-integrating new headcount, even now that CIS has re-hired/re-staffed projects and incentivized employees)."
FY11 EPS estimate cut from $0.43 to $0.26 and FY12 from $0.50 to $0.40.
For an analyst ratings summary and ratings history on Camelot Information Systems click here. For more ratings news on Camelot Information Systems click here.
Shares of Camelot Information Systems closed at $2.39 yesterday.
Barclays analyst says, "CIS reported softer 3Q results, with revenue about 4% lower and EPS about $0.06 lower than expectations, and reduced full-year guidance due to impacts from the ongoing FIS reorganization. After initial softness in trading, the stock turned around to outperform the market by the close (up 9% vs. S&P 500 up 3.6%), which we suspect relates to greater comfort/relief in being able to isolate and understand the business challenge: In our view, management was incrementally more direct/clear in
discussing the revenue and margin constraints that emerged from the loss of 150 employees in the Agree subsidiary, and the difficulty management had anticipating near-term productivity losses that would continue through year-end (as management and staff have needed to devote considerable attention to re-integrating new headcount, even now that CIS has re-hired/re-staffed projects and incentivized employees)."
FY11 EPS estimate cut from $0.43 to $0.26 and FY12 from $0.50 to $0.40.
For an analyst ratings summary and ratings history on Camelot Information Systems click here. For more ratings news on Camelot Information Systems click here.
Shares of Camelot Information Systems closed at $2.39 yesterday.
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