Although financial stocks are in the earnings spotlight this week, Compuware Corporation (CPWR - 7.78) is in focus today with its own round of earnings news. Michigan-based CPWR estimates its fiscal third-quarter earnings will arrive at 10 cents per share, with revenue increasing a slight 2%. Analysts, meanwhile, are forecasting earnings of 12 cents per share on 7% growth in revenue. CPWR's full third-quarter results are due out next Thursday, Jan. 26.
As a result, CPWR downwardly revised its full-year guidance, and is now calling for earnings of 40 cents to 42 cents per share, compared to October's forecast of 47 cents to 50 cents per share.
From a technical perspective, the stock has shed roughly 31% of its value over the previous 52 weeks. Prior to today's bearish gap, CPWR had been stagnating in the $8.10 to $8.50 neighborhood.
Despite this shaky performance, the brokerage bunch remains firmly entrenched in CPWR's corner. Zacks reports that 100% of analysts maintain a "strong buy" recommendation toward the stock. In addition, the average 12-month price target of $12.17 -- as calculated by Thomson Reuters -- represents a healthy 47% premium to Friday's close of $8.28.
CPWR could encounter additional analyst-related headwinds, as any downgrades and/or price-target cuts could exacerbate selling pressure on the stock. At last check, CPWR has dropped more than 6% to trade around $7.80.
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