DemandTec shares down after outlook cut

Shares of price-management software company DemandTec Inc. fell Thursday after it lowered its financial forecasts for the current fiscal year.

The stock fell 99 cents, or 11 percent, to $7.93 in midday trading.

Late Wednesday, the San Carlos, Calif., company posted a net loss of $3.7 million, or 13 cents per share, compared with a loss of $1 million, or 4 cents per share, a year earlier.

Revenue rose 8 percent to $19.5 million from $18.1 million.

Both earnings and sales beat analyst expectations as polled by Thomson Reuters.

But DemandTec also said its revenue growth for the fiscal year would be 5 percent to 10 percent, compared with a 10 percent to 18 percent forecast given in April, according to analyst Jeff Van Rhee at Craig-Hallum Capital.

Van Rhee said he remained bullish on the company in the long term, but has turned cautious in the intermediate term. He lowered his price target on the stock to $7.50 from $8.

Michael Nemeroff at Wedbush Morgan also cut his price target in response to the lowered outlook, to $8.50 from $9.50. In a morning note, he said he's concerned about the slowdown in revenue growth, but believes the weak economy is behind it, rather than missteps at the company.

DemandTec's software helps retailers decide how to price and market their wares.