Analyst Richard Davis says the enterprise software maker's estimates of breakeven to a penny operating earnings per share is below his seven cents estimate, and the $200 million to $205 million revenue misses his $217 million estimate. Davis notes license revenue is seen at $42 million to $45 million, vs. his $53 million estimate, as $1-million-plus deals fell to four from eight. He says the shortfall isn't from weakness in a particular industry, and that business wasn't lost to rivals.
Davis says investors got ahead of themselves in the past three weeks, lifting most software companies 10% to 30%. He thinks J D Edwards is attractive at $9 to $10. He cut the 37 cents fiscal 2003 (Oct.) earnings per share estimate to 19 cents, and cut the 54 cents fiscal 2004 estimate to 51 cents. Davis also cut his $903 million fiscal 2003 revenue estimate to $846 million, and cut the $993 million fiscal 2004 estimate to $912. He is keeping his hold rating.