Wednesday, June 27, 2001
Convergys shares fall 5 percent
By Mike Boyer
The Cincinnati Enquirer
Shares of Cincinnati-based Convergys Corp. fell 5 percent Tuesday, closing at $29.15, in the face of increased skittishness by investment analysts over the outlook for customer support businesses in a slower economy.
Tuesday's $1.61 drop was on top of a 9 percent decline, or $3.06 a share, Monday.
A spokesman for Convergys, which handles billing and customer management services for large corporations, said the company had issued no news that would account for the stock drop.
But analysts for at least three Wall Street firms Goldman Sachs, Merrill Lynch and Robinson-Humphrey have lowered their earnings expectations for Convergys recently.
Debra Katz, at Goldman Sachs, reduced her estimate of Convergys' third-quarter earnings from 35 to 33 cents a share. Stephen McCellan at Merrill Lynch cut his estimate for the current fiscal year by 10 cents to $1.27 a share.
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Convergys shares fall 5 percent
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