Shares of Digitas (DTAS) were among technology's losers Wednesday, plunging 23% after the interactive marketing and services firm posted mixed second-quarter results and warned that third-quarter results would be below expectations.
For the second quarter, the company earned $13.5 million, or 14 cents a share, on fee revenue of $100.5 million. Excluding items, Digitas earned $17 million, or 17 cents a share. Analysts polled by Thomson First Call expected earnings of 16 cents a share on revenue of $102.2 million. During the year-earlier period, the company posted adjusted earnings of $13.3 million, or 14 cents a share, on revenue of $87.6 million.
Digitas sees third-quarter adjusted earnings of 10 cents to 13 cents a share, with fee revenue of $93 million to $97 million. Analysts project earnings of 17 cents a share and revenue of $106.3 million. "While I am disappointed in our reduced near-term outlook, due to a handful of specific client challenges, our largest and longest-standing client relationships remain strong," the company's CEO said. Shares were trading down $2.39 to $7.84.
Yahoo! (YHOO - Get Report) shares tumbled more than 20% after the Internet company posted mixed second-quarter results and warned that it would delay the rollout of its search-engine upgrade. The company posted earnings of $164 million, or 11 cents a share. Revenue, excluding the money that it pays to its search-advertising partners, came in at $1.12 billion. Analysts expected earnings of 11 cents a share on revenue of $1.14 billion. A year earlier, the company earned $754.7 million, or 51 cents a share, on revenue of $875.1 million.As for the delay of the search-engine upgrade, Yahoo! now sees the upgrade being delivered during the fourth quarter instead of the third quarter. Shares were trading down $6.49 to $25.75. ADC Telecommunications (ADCT) dropped 11% after the telecom equipment maker warned that third-quarter results will be well below Wall Street's forecast. For the period ending July 28, the company sees earnings, excluding items, of 25 cents to 28 cents a share. Analysts project earnings of 33 cents a share. ADC anticipates revenue of $330 million to $335 million, below Wall Street's target of $368.7 million. "Given the current environment in which our larger wireline and wireless customers are consolidating and integrating operations, these short-term variations can be difficult to plan for and we do not believe they are reflective of the long-term prospects for our business," the company said. Shares recently were trading down $1.58 to $12.78. Shares of Andrew (ANDW), which is in the process of being acquired by ADC, fell 10 cents to $7.79.