logo
Plus   Neg
Share
Email
Comment

Forrester Research Q4 Profit Down; Outlook Weak

Forrester Research Inc. (FORR) 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
BlackRock Inc., the world's largest asset manager, said it plans to speak with gun makers and distributors following public outcry after the Florida high school shooting that killed 17 people. BlackRock, which had $6.3 trillion in assets under management as of December 31, 2017, holds shares in gun makers Sturm Ruger & Co. Inc. as well as American Outdoor Brands Corp. An upgraded boarding in Southwest Airline will cost you more. The airline usually not assign seats to passengers, but one can choose from an open seat. The Upgraded Boarding will allow passengers to choose from A1 - A15 boarding positions. The cost for these positions would be $30, $40 and $50, depending on flight and route. This option can be availed from the ticket counter or gate. Citigroup Inc.'s co-head of mergers and acquisitions, Peter Tague, is leaving the company, according to media reports, citing people familiar with the matter. Tague has been co-head of Global M&A business at Citigroup since March 2012, alongside Cary Kochman and Mark Shafir. It was not immediately clear what Tague intends to do after he leaves Citigroup.
comments powered by Disqus
Follow RTT