Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Forrester Research Q4 Profit Down; Outlook Weak

Forrester Research Inc. (FORR: Quote) reported that its fourth-quarter GAAP net income was $4.7 million, or $0.21 per share, compared with net income of $8.9 million, or $0.38 per share, for the same period last year.

On a pro forma basis, net income was $6.4 million, or $0.28 per share, for the fourth quarter of 2012. This compared with pro forma net income of $9.2 million, or $0.40 per share, for the same period in 2011.

Pro forma net income for the latest-quarter excluded stock-based compensation of $1.5 million, amortization of $0.7 million of acquisition-related intangible assets, and acquisition-related costs of $0.6 million related to M&A activity Forrester did not pursue.

Pro forma net income for the fourth quarter of 2011 excluded stock-based compensation of $0.5 million, amortization of $0.7 million of acquisition-related intangible assets, $0.4 million of reorganization costs, and net investment gains of $0.4 million.

Total revenues were $75.1 million for the fourth quarter of 2012, compared with $74.7 million for the fourth quarter of last year. Research revenues increased 3%, and advisory services and other revenue decreased 4% compared with the fourth quarter of last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share on revenues of $74.14 million for the quarter. Analysts' estimates typically exclude special items.

Forrester announced a reduction of approximately 30 jobs or an estimated 2.5% of its workforce worldwide to streamline its operations and to bring costs more in line with projected revenues for 2013. The company anticipates incurring approximately $1.5 million to $1.8 million of severance and related benefit costs in the first quarter of 2013 related to the reduction.

For the first-quarter, the company expects results to be in the range of loss $0.02 per share - profit $0.02 per share, pro forma earnings per share of about $0.09 to $0.13, and total revenues of about $66.0 million to $69.0 million. Analysts expect the company to report earnings of $0.20 per share on revenues of $71.47 million for the first-quarter.

Looking ahead for fiscal 2013, the company anticipates earnings per share to be in the range of about $0.52 to $0.59, Pro forma earnings per share of about $0.79 to $0.86, and total revenues of about $290.0 million to $298.0 million. Analysts expect the company to report earnings of $1.14 per share on revenues of $307.08 million for fiscal 2013.

Forrester Research also announced that its board has authorized an increase to its regular quarterly cash dividend to $0.15 per share. The next quarterly dividend is payable on March 20, 2013, to shareholders of record on March 6, 2013.

The company also announced that its board of directors authorized a $50 million increase in the company's stock repurchase program, bringing the total available share repurchase authorization to approximately $150 million. As of December 31, 2012, Forrester had approximately 22.3 million shares outstanding.

Register
To receive FREE breaking news email alerts for Forrester Research Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Reserve Bank of Australia Governor Glenn Stevens kept the foreign exchange intervention plan open to build up confidence and bring the stubbornly high currency to lower levels."The exchange rate, another channel through which monetary policy usually has an effect, is probably not doing as much as it might usually be expected to do in achieving balanced growth," he said in his opening statement. Stocks turned in another strong performance during trading on Tuesday, extending the upward trend seen over the past several sessions. The gains on the day once again lifted the tech-heavy Nasdaq to a new fourteen-year closing high. President Barack Obama revealed Monday that he is dispatching Attorney General Eric Holder to Ferguson, Missouri, amid ongoing violence in the St. Louis suburb. Obama said Holder will travel to Ferguson on Wednesday to meet with the FBI agents and Justice Department personnel conducting an investigation of the shooting death of Michael Brown.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.