Why Computer Task Group Shares Got Crushed
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What: Shares of Computer Task Group have gotten crushed today by as much as 23% after the company reported earnings.
So what: Revenue in the quarter totaled $107.1 million, which translated into earnings per share of $0.24. Sales were slightly shy of the $112.2 million Street forecast, and the bottom line result was right on target. Guidance was what rattled investors.
Now what: Third-quarter outlook calls for sales in the range of $105 million to $107 million, with earnings per share of $0.22 to $0.24. Full-year revenue guidance is targeting $428 million to $436 million, with earnings per share of $0.93 to $0.99. All of the above ranges were below what investors were expecting. CEO James R. Boldt said growth this year would be less than initially expected as hospital clients feel the impacts of sequestration.
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The article Why Computer Task Group Shares Got Crushed originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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