Razorfish Down More Than 40% After Profit Warning

Razorfish(RAZF Quote - Cramer on RAZF - Stock Picks) plunged 43%, or $3.75, to $5 after the Internet consulting and services company warned its quarterly earnings would miss analysts' expectations.

The company issued an earnings warning after the bell on Thursday, forecasting lower-than-expected third-quarter net income because of the seasonal impact in Europe and the strong dollar. The company also said its third-quarter cash earnings before amortization of goodwill and intangible assets will be 1 cent to 4 cents a share. Analysts were looking for the company to earn 8 cents a share.

Lehman Brothers lowered its 12-month price target to $12 from $40 and cut its rating on the company to outperform from buy. Credit Suisse First Boston set a $15 price target on the company and cut its 2000 EPS estimate to 17 cents from 31 cents a share, but maintained a strong buy rating on the stock.