Concur Technologies shares fall after 4th-quarter report, 2010 outlook, analyst trims target

Wednesday, November 18, 2009

Concur Technologies shares fall on weak guidance

SAN FRANCISCO — Shares of Concur Technologies Inc. sank Wednesday as some analysts expressed disappointed reactions to the expense management software maker’s fiscal fourth-quarter report and 2010 outlook.

Concur shares fell $4.41, or 10.7 percent, to $36.67 in afternoon trading.

Late Tuesday, Concur said it earned 11 cents per share for the quarter on $64.8 million in revenue. Adjusted pretax earnings totaled 29 cents per share.

The company predicted 11 cents per share, or 27 cents per share on an adjusted pretax basis, for the current quarter. For the full year, Concur expects 52 cents per share, or $1.27 on an adjusted pretax basis.

Analysts polled by Thomson Reuters expected a fourth-quarter profit of 18 cents per share on $64.4 million in revenue. The analysts are looking for first-quarter earnings of 19 cents per share and fiscal 2010 earnings of 87 cents per share. Analysts often exclude one-time items from their estimates.

In a client note, Kaufman Brothers analyst Karl Keirstead lowered his price target by $5 to $37 and kept his “Hold” rating, saying he was disappointed by the company’s flat margin outlook, which calls for 23 percent or more on an adjusted basis.

Meanwhile, Janney Capital Markets analyst Sasa Zorovic kept his $35 price target and “Neutral” rating. The analyst lowered his 2010 earnings and revenue estimates, saying that demand for Concur’s products is stabilizing and increasing, but the fourth-quarter results show this is happening more slowly than he expected.

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