First Consulting Group Inc saw its shares plummet nearly 19% to close at $9.46 yesterday, as Wall Street punished the health services firm for missing Q4 forecasts and a softened first-quarter outlook.
Revenue for the fourth quarter was down nearly 5% to $69.8m. FCG reported net income of $5.1m, or $0.19 per share, compared with a loss of $10.2m for the same period last year, but analysts had been looking for $0.21 per share.
For all of 2006, revenue dropped 5% to $277.8m from $293.2m. Net income came in at $20.9m, compared with a loss of $18.1m in 2005.
The company now expects lower of revenue of between $64m and $66m for the current quarter, on decreased sales in its health delivery and software services businesses. Wall Street is expecting $70.9m in revenue for Q1. The company also forecast a lower Q1 operating profit than in the fourth quarter due to higher sales expenses in its delivery and outsourcing segments.
Shares continued to fall in after-hours trading, dropping another 5% to $8.98.