) to neutral from overweight.
Analyst Bart Crockett said that the company forecast third quarter revenue as likely to grow only 5% with earnings before interest taxes depreciation and amortization loss totaling $5 million, vs. his previous estimates of 15.5% revenue growth, and earnings before interest taxes depreciation and amortization profit of $386,000. The analyst says the company blames weakening consumer sentiment and high gas prices for its disappointing September after a reasonable August. He thinks the lack of sustainable profits will limit upside in the shares, with takeover potential limiting downside. He widened his 33 cents fiscal year 2006 (ending Jan) loss estimate to a 56 cents loss, and cuts his 17 cents fiscal year 2007 earnings per share to 9 cents earnings per share. He also cuts his $687 million fiscal year 2006 revenue estimate to $671 million, and $747 million fiscal year 2007 to $727 million.