UPDATE 1-Corporate Executive Board shares plunge on weak outlook
(Adds conference call details, updates stock movement)
BANGALORE Feb 10 (Reuters) - Shares of Corporate Executive Board Co EXBD.O plunged as much as 15 percent Wednesday, a day after the company forecast 2010 earnings way short of expectations, overshadowing its upbeat fourth-quarter results.
"Over the near term we expect our operating margins will be pressured by the combination of lower revenue and flat to slightly increasing expense, Chief Financial Officer Richard Lindahl said in a conference call to analysts.
The provider of research and analysis services to businesses does not expect a quick recovery in contract value growth.
The company, which says its mission is to provide executives with "the authoritative and timely guidance to excel in their roles," expects adjusted earnings of 85 cents to $1.10 per share on revenue of $385 million to $405 million in 2010.
Analysts on average were looking for earnings of $1.29 per share, before items, on revenue of $418.2 million, according to Thomson Reuters I/B/E/S.
The company posted fourth-quarter net income of $13.7 million, or 40 cents per share, beating analysts' estimates of 24 cents a share. [ID:nWNAB5201]
Contract value fell by 19 percent to $393.7 million.
Shares of the company were trading down more 7 percent at $21.20 Wednesday afternoon on Nasdaq. They touched a low of $19.58 earlier in the day. (Reporting by Anirban Sen and Abhinav Sharma in Bangalore; Editing by Anil D'Silva and Unnikrishnan Nair)
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