Parametric Tech Cuts Revenue Outlook
Manufacturing-software developer Parametric Tech (PMTC) warned Thursday that revenue for the third quarter would come in below its previous guidance.
The stock plunged $4.07, or 18.9%, to $17.50 in recent after-hours trading.
Revenue will be approximately $225 million, well short of previous expectations for revenue in the $235 million-to-$240 million range. Earnings will also be affected, according to the Needham, Mass., company.
Analysts were expecting revenue of $238 million and per-share earnings, excluding items, of 28 cents for the quarter, according to Thomson Financial.Lower-than-expected license revenue of $62 million was the primary cause, Parametric said. "Though third quarter total revenue grew approximately 4% year over year ... our license revenue fell short of our forecast in North America and Japan," said CEO and president C. Richard Harrison in a statement. The company has already begun reducing costs, he stated. The company also expects to lower fourth-quarter guidance when it makes its full earnings announcement on July 25. Analysts were expecting fourth-quarter revenue of $263 million. In June, CFO Neil Moses had said full-year revenue was expected to be $950 million, suggesting a fourth-quarter revenue expectation of at least $260 million.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV