(Adds conference call details, updates stock movement)
BANGALORE Feb 10 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
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)