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

Quick Facts

Editors Pick
Stocks saw some volatility following the release of the Federal Reserve's monetary policy announcement on Wednesday but managed to end the day modestly higher. With the upward move, the Dow reached a new record closing high. President Barack Obama sought to emphasize in remarks on Wednesday that the American forces being deployed as part of the fight against the terrorist group ISIS will not have a combat mission. Republican Joni Ernst has moved into the lead in the potentially crucial Iowa Senate race, according to the results of a Quinnipiac University poll released on Wednesday. The poll found that 50 percent of likely Iowa voters would support Ernst if the election were held today, while 44 percent would vote for Democratic Rep. Bruce Braley.
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.