GT Bicycles’ Stock Falls After Low Earnings
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SANTA ANA — GT Bicycles Inc. shares fell 22% after the company said its first-quarter earnings will fall short of analysts’ estimates.
The stock slid $2.25 a share to $8. Earlier, it had touched $7.75 a share, a 15-month low.
GT Bicycles said its mountain bike sales haven’t been as strong as expected. It said the company should be able to meet analysts’ estimates for 1997 because of a new product line expected to be introduced later this year.
The company had been expected to earn 24 cents a share in the first quarter, up from 22 cents a year earlier, based on the average estimate of six analysts in a survey. For the year, eight analysts interviewed by First Call expect GT Bicycles to report earnings of $1.15 a share. For the first quarter of last year, the company reported net income of $2.2 million, or 22 cents a share, on sales of $48.9 million.
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