Cbeyond plunges on FY08 guidance below Wall Street's view
Cbeyond, Inc. (Nasdaq: CBEY) shares are plunging after the Internet-based phone and data services company projected 2008 revenue below expectations and a Citigroup analyst downgraded the stock.
After Thursday’s close, Cbeyond posted fourth-quarter earnings of $12.5 million, or $0.44 per share, up from $4.4 million, or $0.16 per share, a year earlier. Analysts had expected earnings of $0.10 per share.
Quarterly revenue rose 31% to $76.9 million, from $58.9 million a year earlier. Wall Street analysts projected revenue of $76.7 million.
Cbeyond expects 2008 revenue in the range of $355 million to $360 million. Wall Street analysts project revenue of $360.2 million.
Citigroup analyst Erin E. Schmitz downgraded the stock to "hold" from "buy." In a note to investors, Schmitz said it expects the weakening U.S. economy to increase the loss of customers and weigh down the stock in 2008.
In afternoon trading, CBEY shares are down 21.74%, or $5.11, at $18.39. Over the last 52 weeks, shares have ranged from $15.58 to $46.51.
