The Voice of Online Marketing | MEDIA KIT | NEWS TIPS
The latest practical news and developments at the intersection of search, email,
social media, mobile marketing, web analytics, online advertising, ecommerce and more.
Marketing News on Twitter Interactive marketing RSS newsfeed
Advertisement
Advertisement
MARKETING JOBS

Digitas Lowers Forecast, Shares Plunge

Shares of Digitas plunged nearly 20 percent overnight after it lowered its full-year revenue and earnings estimates because of "specific client challenges."

According to AdWeek, Boston-based Digitas says it now projects 2006 fee revenue of $380-395 million, instead of $405-425 million; net earnings of 41-49 cents per share, rather than 46-56 cents per share; and adjusted cash earnings of 54-62 cents per share, instead of 61-71 cents per share. CEO David Kenny said despite near-term, "specific client challenges, our largest and longest-standing client relationships remain strong."

Apparently American Express is mulling some shifts - about one-tenth of the account - to smaller, less-expensive shops. Digitas has not commented on AmEx, which has reaffirmed its relationship with Digitas. AmEx and General Motors accounted for half of the company's 2005 revenue.

Digitas reported third-quarter net income of $13.5 million, or 14 cents per diluted share, compared with $11.9 million, or 12 cents per share, for the year-ago period - an increase of about 13 percent. Revenue was $191 million, up more than 40 percent.

Search

Related Topics

Advertisement
Related stories: - Digitas's Nardini on Keeping Pace with Media Buying Changes - P&G's Braun Launches 'NoScruf' Viral Campaign - Digitas Revenue Up 21 Percent in Q1 - Home Depot Taps Digitas - As GM Fidgets, Accounts May Shift - Digitas Buys Pharma Agency MBC - Digitas Says Earnings, GM Relationship Strong

Subscribe to MarketingVOX|News

Latest interactive marketing news Latest media planning news & facts Latest marketing data & research