NCI shares nosedive on weak outlook

NCI shares nosedive on weak outlook

Stock Market Predictions

(Global Markets) - Shares of NCI Inc (NCIT.O) fell 33 percent to their lifetime low after the IT services provider gave a bleak full-year revenue outlook citing continued uncertainty in the United States federal sector.

The Reston, Virginia-based company, which caters to the U.S. federal government agencies, on Thursday said it expects revenue of $340 million to $360 million. Analysts on average were expecting $514 million, according to Thomson Global Markets I/B/E/S.

"A number of factors contributed to our bookings shortfall in 2011, including an unfavorable competitive environment, pricing pressures and delayed or cancelled procurements," President Brian Clark said in a statement.

Analysts at Wells Fargo said "NCIT's historic 'value' pricing for IT work is being under-cut by competitors, especially small businesses that have preferential bidding status." The analysts cut their rating on the company's stock to "underperform."

Shares of the company were down 30 percent at $8.00 in morning trading on the Nasdaq. They touched a low of $7.70 earlier in the session.

(Reporting by Rachana Khanzode in Bangalore; Editing by Maju Samuel)