A robust Q2 performance by Internet service provider Greenfield Online (SRVY) has not changed Zacks senior information technology analyst Robert J. Perri, CFA's Hold rating on the shares of the company. The following excerpts explain his position:
'SRVY reported a solid second quarter of 2007 with revenues and earnings exceeding our estimates, and we expect the company to continue to perform well in a tough marketplace over the near term. The company's new business-to-business (B2B) initiative, along with its growth in Europe should help boost revenue, although the company will continue to increase spending.
'We have raised our revenue and earnings estimates for 2007 slightly, although we lowered our fourth quarter expectations as the company only maintained its guidance for the full year. We revised our 2007 revenue estimate to $123 million from our previous $120 million estimate, and we have raised our earnings per share estimate to $0.47 per share from our previous $0.42 estimate.
'We have also tweaked our third quarter revenue estimate to $31 million from our previous $29 million estimate, although we lowered our fourth quarter estimate to $33 million from $35 million as the company decided to maintain its high-end guidance estimate for the full year. Currently, Greenfield Online is trading at 32.2x our 2007 EPS estimate of $0.47, and 29.7x our 2008 EPS estimate of $0.51.'
Read the full analyst report on SRVY.
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