Egghead.com (Nasdaq: EGGS) said Friday that it will fall short of fourth quarter revenue estimates, despite projecting a narrower-than-expected loss for the period, due to softening demand. But officials said the company is still on track to reach profitability in the fourth quarter of this year.
Shares of the e-tailer rose $0.031 to $1.25 at the opening bell. The company's stock had traded as high as $13.50 in the past 52 weeks before falling to as low as $0.50.
Menlo Park, Calif.-based Egghead.com said it now expects to report a loss for the fourth quarter, ended Dec. 31, of between 23 cents and 25 cents a share, on revenues of $91 to $93 million.
While the estimated loss per share is better the First Call analysts' consensus estimate of a loss of 41 cents a share for the quarter, the new revenue figure is substantially lower than the Street's forecast of $115.75 million in sales.
According to the company, the revenue shortfall is due to a softening of consumer demand for personal computers and related technology products.
Poor sales caused fellow e-tailer eToys (Nasdaq: ETYS) to post a wider-than-expected third quarter loss of 52 cents a share, excluding charges, after yesterday's close. The stock was hammered in Friday's session, dropping 20 percent to $0.25.
Despite the drop off in demand, Egghead.com CEO Jeff Sheahan said the company remains committed to reaching profitability in the fourth quarter of this year, on account of ongoing reductions in expenses.
The company will release actual fourth quarter results on February 22, and will issue further guidance for fiscal 2001 at that time.