Cap Gemini shares jump on sales forecast

29th April 2004, Comments 0 comments

PARIS, April 29 (AFP) - Shares in French computer services and conulting group Cap Gemini Ernst and Young jumped over eight percent here after the group gave a first-quarter sales forecast above some analysts' forecasts.

PARIS, April 29 (AFP) - Shares in French computer services and conulting group Cap Gemini Ernst and Young jumped over eight percent here after the group gave a first-quarter sales forecast above some analysts' forecasts.

Shortly after midday, shares in the group were showing a gain of 4.76 percent at EUR 30.40 after having risen as high as 8.20 percent.

The company's shares have shed about 28 percent of their value over the past half year.

Earlier, chief executive Paul Hermelin said at the group's annual shareholders meeting that he expected first-quarter sales to come in at around EUR 1.477 billion (USD 1.745 billion), which would represent a five percent decrease from the EUR 1.55 billion recorded in the same period in 2003.

However, the estimate was better than some analysts had expected."Cap Gemini forecast sales in line with our expectations but apprently better than the consenus of analysts' forecast which was pessimistic," Global Equities analyst Stephane Lefevre-Sauli said.

"Sales fell in the first quarter but the group sees an improvement in its Us buiness which could lead it to raise its prices over the course of the year," she added.

Hermlin said the first-quarter estimate would be clearer in the publication of the company's first-quarter results May 11.


© AFP

                                           Subject: French news

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