So, now we’re back to square one. My first post on BIDZ, back in September, asked simply, What’s Up With Bidz.com? Since then, lots of things have been up with BIDZ: the stock soared, then dropped on the infamous Citron Research report. Yesterday after the close, the company announced that it now sees fourth quarter results at the high end of its guidance range of revenues of $56-$58 million, and pre-tax income of $5.6-$6.0 million.
For 2007, the Company sees revenue at the high-end of its previous guidance range of $180-$182 million and pre-tax income of $18.0-$18.5 million and approximately 26.4 million fully diluted shares outstanding. The Company expects its effective tax rate to be approximately 20.2%, and gross margin of approximately 27-28%.
The Company maintained its 2008 forecast of revenue of $225-$230 million, pre-tax income of approximately $23.5-$25.5 million and gross margin of approximately 27-28%. The Company expects its effective tax rate to be approximately 40%. The Company expects fully taxed GAAP EPS of 47-51 cents, with about 30 million fully diluted shares.
But the stock nonetheless is falling hard Thursday, down $1.40, or 12.2%, at $10.22.
I see no other incremental news; anyone have any theories on the reasons for today’s drop?