LogMeIn forecast misses analysts' estimates, shares tank
(Reuters) - Remote-access software maker LogMeIn Inc (LOGM.O) forecast first-quarter earnings below analysts' expectations on higher tax rate, sending its shares down as much as 24 percent in extended trading.
The company, which mainly targets small businesses and consumers, said it expected its tax rate to be around 50 percent in the current quarter, up from an effective tax rate of 39 percent in the fourth quarter.
LogMeIn expects first-quarter adjusted earnings of 9 cents to 10 cents per share on revenue of $36 million to $36.5 million.
Analysts were expecting earnings of 18 cents per share on revenue of $38.2 million, according to Thomson Reuters I/B/E/S.
The company's net income rose to $2.2 million, or 9 cents per share, in the fourth quarter from $2 million, or 8 cents per share, a year earlier.
Excluding items, the company earned 24 cents per share.
Revenue rose 14 percent to $37 million.
Analysts had expected the company to earn 18 cents per share on revenue of $36.7 million.
Shares of the Woburn, Massachusetts-based company closed at $23.66 on the Nasdaq on Thursday.
(Reporting by Supantha Mukherjee and Aditya Kondalamahanty in Bangalore)
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