Ariba: JMP Sees Trouble in Services Business; Cuts Estimates

Ariba (ARBA) shares are coming under pressure today following a cautionary note on the company this morning from JMP Securities analyst Patrick Walravens.

Walravens today repeated his Market Outperform rating on the stock, but cut his price target to $15 from $18. He also cut his EPS estimate for the September 2009 fiscal year to 61 cents from 70 cents; for FY 2010 he goes to 83 cents, from 91 cents.

“While we continue to believe that Ariba’s software solutions should fare relatively well in this macroeconomic environment, the services business may not hold up as well as we had previously believed,” he writes. Walravens notes that the company had guided to December quarter services revenue of $32 million to $34 million; roughly 40 percent of that relates to systems implementation. He notes that product upgrades are discretionary “and could easily be delayed by cautious customers.”

Read the rest of this post


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »