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With Delta Bankrupt, Digitas Earnings to Drop

Digitas said it expects the bankruptcy of Delta Air Lines to result in $3 million to $4 million of bad debt, lowering Digitas's earnings for the third quarter and full year, reports Adweek. Digitas now forecasts earnings per share of 5 to 7 cents for the quarter, instead of 9-11 cents; for 2005, earnings are now expected to fall between 40 and 43 cents, rather than 43- 46 cents. Digitas had forecast 9 to 11 cents per share earnings in Q3 ands for the year. Through Digitas's Modem Media agency, Delta is one of Digitas's three largest accounts (through Modem Media).

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