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Parametric Technology (PMTC) Falls after Lowering Outlook

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Shares of Parametric Technology Corp. (NASDAQ:PMTC) are plunging over 20% in morning trade after the company lowered its profit and sales outlook for its fiscal first quarter well below analyst forecasts.

Parametric Technology (PMTC) the product development software maker said it now expects to report net revenues for the quarter ended March 31, 2012, of approximately $300 million. This is significantly lower than analyst consensus forecasts of $315.3 million.

Parametric Technology (PMTC) now expects to report adjusted earnings of 26 cents to 28 cents per share. This is also well below analyst forecasts that called for 34 cents per share in earnings. The company cited the loss of a major contract in Europe for the shortfall.


James Heppelmann, president and chief executive officer, commented, “Our second quarter license revenue was impacted by a large transaction in Europe that did not close and lower than expected performance in North America. Our maintenance and services business continued to perform well, as did our newly acquired MKS business, with the shortfall in Q2 revenue relative to our guidance of $305 to $320 million due to reduced license sales. While we are disappointed with our Q2 results, we are strategically positioned in attractive growth markets and remain confident in our ability to drive long-term growth and profitability.”

Following the lowered guidance Parametric Technology (PMTC) was downgraded by JPMorgan Chase & Co. (NYSE: JPM) from an “overweight” rating to a “neutral” rating in a research note issued on Thursday.

Parametric Technology (PMTC) had also recently received an upgrade from analysts. Analysts at Jefferies Group (NYSE: JEF) had reiterated a “buy” rating on the shares of Parametric in a research note to investors on Wednesday.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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