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Upgrade, 4Q results no help to NaviSite

NaviSite shares fell $1.25 to $37.63 Wednesday even though it received an upgrade from Prudential Securities after topping analysts' estimates in its fourth quarter.

In the quarter, NaviSite posted a loss of $19.5 million, or 34 cents a share, on sales of $20.5 million.

First Call Corp. consensus pegged NaviSite (Nasdaq: NAVI) for a loss of 39 cents a share in the quarter.

The $20.5 million in sales represents a 455 percent improvement from the year-ago quarter when it lost $8.9 million on sales of $3.7 million.

On Wednesday, Prudential Securities upgraded the stock from an "accumulate" rating to a "strong buy."

"Our fourth quarter caps off a year of dramatic growth and accomplishment," said CEO Joel Rosen in a prepared release. "We have not only grown our customer base, but also have established partnerships both domestically and overseas which position us well to add new layers of growth through new value-added services and expansion internationally."

For the fiscal year, NaviSite lost $57.9 million, or $1.37 a share, on sales of $49.8 million.

Its shares moved up to a 52-week high of $164.94 in March after falling to a low of $14.06 in October.

All 11 analysts tracking the stock rate it either a "buy" or "strong buy."