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Computer Horizons hammered following profit warning

Shares of Computer Horizons Corp. (Nasdaq: CHRZ) fell 1 3/4, or 13 percent, to 11 3/4 Thursday after warning it would miss analysts' estimates in its second quarter and in the fiscal year.

Company officials blamed the disappointing results on a greater-than-anticipated market slowdown.

The computer consulting firm said it now expects to return a profit of between 23 cents to 25 cents a share in its second quarter, considerably lower than the 31 cents a share predicted by a survey of analysts for First Call Corp.

It also expects its fiscal 1999 earnings to fall between 85 cents a share to $1 a share, well below the First Call estimate of $1.27 a share.

The company said it expects second-quarter sales to improve between 10 and 14 percent and yearly revenues to be in the range of $520 million to $565 million.

"Our clients have been slower in their IT commitments, stretching out what we had anticipated to be a compensating balance in margins for the continued erosion of Y2K business," said CEO John Cassese in a prepared release.

Computer Horizons will release its second-quarter results July 20.

In the year-ago period, it made 34 cents a share.

The stock hit a 52-week high of 44 3/4 last July before tumbling to a low of 9 1/4 in April.

Five of the eight analysts following the stock maintain either a "buy" or "strong buy" recommendation.