H&R Block upgraded Kronos (KRON) to buy from accumulate.
Analyst Steve Shepich says he was looking for $0.15 EPS. The company is begining to see stabilization in the products side of its business, with the services side still growing nicely. He notes gross margins hit a record this quarter, and says Kronos is using "industry-downtime" to strengthen itself by making acquistions. He specifically notes Tuesday's news that Kronos plans to acquire Gerber Systems, a Kronos distributor
operating in Arizona, Colorado, New Mexico and Oklahoma. Shepich says this acquisition will improve margins even further.
He raised his $0.80 fiscal 2001 (Sept.) EPS estimate to $1.24, and raised his $1.25 fiscal 2002 EPS estimate to $1.56.
Shepich has a $56 target.