Corporate Executive Board Co., which provides research and education seminars on business strategy, on Wednesday posted a 2.9 percent drop in fourth-quarter profit and forecast 2008 earnings below analysts' estimates, sending the shares diving in aftermarket trading.
The company said it earned $22.5 million in the fourth quarter, or 63 cents per share, down from $23.2 million in the year-earlier period, or 58 cents per share. Earnings per share were higher because the company reduced the diluted shares outstanding to 35.7 million from 39.8 million in the fourth quarter of 2006.
Analysts polled by Thomson Financial expected earnings of 59 cents per share.
Revenue increased 13.3 percent to $142.2 million from $125.5 million in the year-earlier period.
For the full year, profit edged up to $80.6 million, or $2.17 per share, from $79.2 million, or $1.94 per share. Revenue jumped 15.7 percent to $532.7 million from $460.6 million.
Chief Executive Tom Monahan said growth in the value of the company's contracts was lower than expected, as sales slowed in the large North American corporate market. Those declines were partly offset by 25 percent growth in the value of international contracts, he said.
The company also said it expects earnings per share of $2.06 to $2.22 in 2008, below analyst estimates of $2.46.
Corporate Executive Board shares plunged $11.32, or 21.8 percent, to $40.50 in after-hours trading, after falling $3.27, or 5.9 percent, to finish regular trading at $51.82. The stock has ranged from $50.38 to $96.33 over the past year.
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