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Wachovia downgraded Dendrite (DRTE
) to market perform from outperform, citing lack of visibility and the software company's recently announced fourth quarter results.
Analyst Philip Rueppel says the company's fourth quarter guidance came out well below his 28 cents earnings per share and $120 million revenue estimates. He now sees 4 cents fourth quarter earnings per share on $106 million revenue. He also cut his 2006 estimate to 85 cents earnings per share on $455 million revenue, from $1.15 earnings per share on $493 million revenue. The company explained that several deals it formerly expected for the fourth quarter either are not closing, or are expected to close too late in the quarter to generate revenue. He views Dendrite's new chief financial officer and chief operating officer as positives, but they'll need time to make their mark.