Technical services provider Sapient Corp. (SAPE) reported Wednesday a profit for the fourth quarter that almost doubled from last year, reflecting growth in service revenues. Looking ahead, the company forecast growth in service revenues for the first quarter and full-year 2012. Shares of the company dropped more than 6 percent in after-hours trading.
The Boston, Massachusetts-based company reported net income of $27.2 million or $0.19 per share for the first quarter, higher than $15.7 million to $0.11 per share in the prior-year quarter.
Excluding special items, adjusted net income for the quarter increased to $32.5 million or $0.23 per share from $19.4 million or $0.14 per share in the year-ago quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts' estimate typically excludes one-time items.
Total gross revenues for the quarter grew to $272.97 million from $232.51 million in the same quarter last year. Analysts had a consensus revenue estimate of $262.51 million for the quarter.
Service revenues, which accounted for 96 percent of total revenues in the quarter, grew 18 percent to $262.15 million from last year. Reimbursable revenues were $10.82 million.
The company also exceeded the $1 billion threshold in annual revenue for the first time in Sapient's history.
Looking ahead to the first quarter, Sapient forecasts service revenues in a range of $262 million to $266 million. Analysts expect the company to report revenues of $276.85 million.
The company also projects a 13 and 16 percent growth in service revenues for the full-year 2012, implying annual sales between $1.15 billion and $1.18 billion, based of service revenues of $1.02 billion reported for fiscal 2011. Street is currently looking for total revenues of $1.20 billion for fiscal 2012.
SAPE closed Tuesday's regular trading session at $12.91, down $0.17 or 1.30% on a volume of 1.06 million shares. The stock lost a further $0.81 or 6.27% in after-hours trading.
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