Internet Capital Group (Nasdaq: ICGE) announced a new chief financial officer Wednesday; Edward H. West, former executive vice president and chief financial officer of Delta Air Lines will take the CFO reigns. The company will also report its first quarter results this Thursday.
Shares in the business-to-business Internet incubator closed at 35 3/8 Tuesday, a fraction of its 52-week high of 212. As the market for initial public offerings have faded, companies such as ICG, which rely on IPOs for income, have come under investor scrutiny.
West succeeds David D. Gathman who is leaving at the end of the year to pursue other personal interests, the company said. In the interim, Gathman will work with West to ensure a smooth transition.
While analysts don't project revenue and EPS for ICG, or other holding companies such as CMGI (Nasdaq: CMGI), a report from Lehman Brothers says the company should report a strong quarter based on expectations for aggregate revenue.
ICG, which will report quarterly results after Thursday's market close, is expected to have aggregate revenue about double the $211 million in last year's first quarter: $450 million.
Aggregate cash deployed in the quarter is expected to be between $500 million and $600 million, and the company had about $300 million to $400 million in cash as of June 30, the Lehman report said, a level that is likely to limit new U.S. acquisitions.
Lehman Brothers' rating on the stock is a "compelling long-term buy," though "short term movements in the stock price will most likely await new IPOs," according to the firm's report.