Edgewater Technology dips on lower Q3 profit
Edgewater Technology Inc. (Nasdaq: EDGW) shares are diving after the technology consulting firm reported a decline in third-quarter profits. The Wakefield, Mass.-based company’s net income for the three months ended Sept. 30 totaled $0.91 million, or $0.08 per share, below analyst estimates of $0.09 per share and from $1.06 million, or $0.10 per share, a year earlier.
“While we experienced service revenue growth in both our technical and business consulting offerings, our technical offering growth was affected by a slowdown in customer decision making processes and a delay in the launching of previously signed deals,” CEO Shirley Singleton said in a statement. “We believe that our fourth-quarter service revenue will be up over third-quarter service revenue, but near term organic revenue growth may be hampered by recent, more cautious customer behavior which could have a modest effect on our technical and business consulting offerings.”
Edgewater’s quarterly revenue grew to $16.35 million, from $15.16 million a year earlier.
In morning trading, EDGW shares are down 16.99%, or $1.60, at $7.82. Over the last 52 weeks, shares have ranged from $5.66 to $10.
