Pegasus Reduces Revenue Estimates, Stock Falls

DALLAS Shares of Pegasus Solutions fell sharply December 12 after the company reduced fourth-quarter and fiscal 2001 earnings estimates. Earlier this week, Pegasus said its fourth-quarter revenue estimate would be $47 million instead of $48 million, or 7 cents compared to 9 cents per share. The hotel-reservations processing company also said it expects fiscal 2001 revenue of $220 million instead of $230 million, or 60 cents instead of 65 cents per share, compared with analysts estimates of 82 cents a share. Travel agents and Internet sites use Pegasus to book hotel rooms, but the company said its seeing fewer such reservations than it anticipated. The weak euro was also blamed for lower bookings. (12/13/00) Source: The Dallas Morning News