DemandTec Shares Sink As Guidance Disappoints

SAN CARLOS, Calif. (AP) — Shares of price-management software company DemandTec Inc. sold off a day after the company said its outlook for its fiscal first quarter was "more uncertain" and analysts cut their estimates on the stock.

Wedbush Morgan analyst Michael Nemeroff downgraded the San Carlos, Calif.-based company to "Hold" from Buy" on the weaker-than-expected guidance.

He also lowered his price target on the stock to $9.50 from $10, trimmed his revenue estimates for fiscal 2010 to $85.6 million from $92 million; and reduced his earnings-per-share estimate for 2010 to 14 cents from 15 cents.

"The company's organic growth rate could drop below 10 percent in the (first quarter)" and for the year, Nemeroff said, while competitors are growing revenue at higher rates.

On Thursday, the company reported a loss of 18 cents per share, or $5 million, for the 2009 fiscal year ended Feb. 28, compared with a loss of 25 cents per share, or $4.5 million, the prior year.

Excluding special charges, the company said it earned 15 cents per share.