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What: Shares of direct marketing service company Harte-Hanks
So what: Revenue was virtually flat from last year at $200.3 million, but net income is what disappointed investors. Net income fell 26.5% to $7.9 million, or $0.12 per share, falling five cents below estimates.
Now what: A poor performing Shoppers business accounted for most of the shortfall. Revenue in the business declined 9.8% and accounted for nearly 75% of the drop in operating profit. The quarter may have been disappointing, but if profit can turn around in coming quarters this stock is a great value at a 11.6 P/E ratio.
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