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US fears weigh on Sage shares
By Tim Bradshaw
Published: April 15 2008 03:00 | Last updated: April 15 2008 03:00
Sage shares fell yesterday despite the software group stating that first-half results would be in line with market expectations.
Analysts' average expectations estimate sales for the six months to March 31 will be £617m, with earnings before interest, tax and amortisation of £145m.
Sage shares fell 6.1p to 192.4p, partly because of concerns about the prospects for a recovery in its US healthcare business and fears that a slowing US economy will hold back IT spending.
But analysts at Merrill Lynch said the "in-line" statement was encouraging given weaker results from Intuit, Sage's US rival, in February. About 70 per cent of Sage's revenues are classified as recurring, which analysts said should provide some insulation from broader economic fluctuations. Tim Bradshaw
Copyright The Financial Times Limited 2008
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