) to hold from buy.
Analyst Cheri Walker says she sees the third quarter as soft, with $0.46 pro forma earnings per share missing her estimate by a penny. Walker notes the company's $160 million to $163 million fourth quarter revenue guidance and $0.44-$0.46 earnings per share; she cut her $0.47 earnings per share estimate to $0.45.
Walker says management declined to give 2003 guidance, but she cut her revenue estimate by $1 million to $738.6 million, inclusive of the $17.3 million in revenue from the acquisition of Informax. She also cut the $2.14 2003 earnings per share estimate to $1.99 due to contracting operating margin and the dilutive acquisition.
Walker cut her $38 12-month target to $33. Given the limited upside to the current price, and the increased acquisition-related risk, she downgraded the stock.