PracticeConsultingSage shares tumble following downgrade

Sage shares tumble following downgrade

Accountancy and payroll software developer Sage Group led the falling shares of the FTSE 100 index on Friday, plunging 13.8% after a downgrade from analysts at ABN Amro and profit warnings from across the Atlantic.

‘We expect the economic threat in the US combined with uncertainty over the group’s strategic position to lead to continued weakness in the share price’ said analyst Warren Howlett.

Although ABN Amro maintained its sales forecasts for Sage, it lowered its recommendation from ‘add’ to ‘hold.’

The downgrade came after US competitor Inuit issued a profit warning due to the ‘difficult economic environment’ coupled with its free distribution of QuickBooks software, which is the main competitor to Sage’s Peachtree subsidiary in the US.

The situation caused Sage’s biggest rival to lower its sales estimates by $2m. Rival Oracle, also worsened its fourth quarter outlook, blaming the downturn in the US economy.

Links

Sage acquires TAS Software

Sage profits soar above £100m

Sage online

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer