RemedyTemp Expects Profits to Fall Short
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RemedyTemp Inc., which provides temporary staffing services, said it expects earnings per share to fall below analysts’ estimates for the third quarter because of lower than expected sales in April and May, the first two months of the period.
Analysts were expecting the Aliso Viejo company to post earnings of 50 cents a share for the three months ending July 2, according to First Call Corp.
Sales increased 5.5% over April-May 1999, less than the company had anticipated, although sales in June typically account for a large part of the three-month total, RemedyTemp said. The company attributed the results partly to delays in several projects.
RemedyTemp earned $4 million, or 45 cents a share, in the third quarter last year on revenue of $128.8 million.
The company’s statement was released after U.S. markets closed. The stock fell $2 a share, or 11%, to $15.63, after the shares were downgraded to “buy” from “strong buy” by analyst Mark Marcon at First Union Securities Inc.
The company expects to report third-quarter results July 25.
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