DOUBLECLICK EXECS WARN OF HIGHER LOSSES

Published on .

(April 16, 2001) -- The stock of Doubleclick took a beating today, after management warned it will post a larger than expected loss for the full year. Doubleclick shares dropped 13.16% on the first trading day since it reported its first-quarter results on Thursday. Shares closed at $10.43, down $1.58.

Doubleclick reported it lost $10.5 million, or 8 cents a share, on sales of $114.9 million, better than the analysts' consensus forecast of 9 cents on sales of $108.5 million. But management reduced its forecast for the year, from $535 million to $565 million in revenues to an expected $425 million to $450 million, based on weakness in media and the slowdown in technology.

The forecast led to downgrades by Salomon Smith Barney and Merrill Lynch & Co., and analysts who did not downgrade the stock reduced their full-year forecasts significantly. But analysts, including Merrill Lynch's Henry Blodgett, also noted Doubleclick has $800 million in cash with plans to grow through acquisitions. Salomon's Lanny Baker said the cash, and declining competition, "creates acquisition opportunity ... to emerge from the current shakeout stronger and more dominant in the online ad services category than it is today." -- Mercedes Cardona

Copyright April 2001, Crain Communications Inc.

In this article:
Most Popular