Blackbaud Hits 52-Week Low On Poor Q3 Results and FY 2012 Guidance (BLKB)

The share price of Software solutions provider Blackbaud (NASDAQ: BLKB) continued its downhill journey that started yesterday soon after reporting fiscal 2012 third-quarter revenue and full-year guidance that were below analysts’ estimates.

The South Carolina-based Blackbaud provides software and related services for nonprofit organizations. The company also provides payment processing services.

Total revenue for the fiscal 2012 third quarter increased to $122.47 million from $95.41 million in the corresponding period last year. The earnings estimate of analysts was $126.30 million for the third quarter of 2012.

Net income for the reported quarter declined to $2.83 million, or $0.06 per share, from $10.21 million, or $0.23 per share, in the third quarter of fiscal 2011.

Non-GAAP net income for the fiscal 2012 third quarter was $11.7 million, or $0.26 per diluted share, compared to $13.0 million, or $0.30 per share, in the same period last year. The average street estimate was $0.24 per share for the third quarter.

The company also announced a third-quarter 2012 dividend of $0.12 per share payable on December 14, 2012, to stockholders of record on November 28, 2012. For the fifth quarter in a row, Blackbaud reported a decline in margins. Following the results, the stock price fell and remained subdued yesterday.

Earlier in January 2012, Blackbaud announced a $275 million deal to acquire fund-raising software developer Convio. The acquisition boosted the share price of Blackbaud to $32.60 on February 3. The fiscal 2011 fourth-quarter results that missed estimates triggered the slide in the share price to around the $30.00 level. However, the shares recovered on the backdrop of the extension of the Convio acquisition bid, which was under scrutiny by the authorities. The fiscal 2012 first-quarter EPS reported on May 3 missed estimates along with a drop in the margin. The market took no time in battering the shares, which slid continuously to reach $25.49 on May 17. A downgrade by “The Street Ratings” in the first week of June led the share price to a low of around $24.00 in the second week of June. On August 7, Blackbaud reported a fiscal 2012 second-quarter net loss. The market took note of the shrinking margins and pushed the share price further down to around $23.00 per share by the second week of September. The share price of Blackbaud took a further blow yesterday following the report of poor third-quarter results.

Today the share price of Blackbaud opened 20 cents higher than the previous closing price of $22.77. However, the prevailing negative sentiment pulled the share price into negative territory within minutes of opening. Before noon, the share price declined by more than 2% to $22.14. The second half of the trading session saw another round of selling that took the share price to a new 52-week low of $21.86.

Blackbaud anticipates fourth-quarter revenue between $119 million and $121 million compared to the consensus estimate of $126.3 million. For the full-year 2012, the company expects revenue in the range of $451 million to $453 million. The average estimate of analysts is $464.3 million for fiscal 2012. Blackbaud sees fiscal year 2012 adjusted earnings per share in the range of $0.91 to $0.92 compared to the analysts’ estimates of $0.93 per share for the year.

Blackbaud ended the day at $21.93, down $0.84 or 3.7% on a volume of 245,890 shares.

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Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.