Shares of Advo Inc. dropped nearly 10 percent in value yesterday, a day after the company lowered its fiscal fourth-quarter outlook below analyst expectations.
Advo, Windsor, CT, the nation's largest full-service targeted direct mail marketing services company, attributed the disappointing revenue outlook to the economy and lower ad spending by furniture/bedding and discount businesses. The stock, which closed Oct. 1 at 28.69, is at its 52-week low.
“These two months traditionally have seasonally lower package revenue, with correspondingly greater amounts of unused postage capacity,” Advo said in a statement.
The company said it now expects earnings of 55 cents to 59 cents a share for the quarter ending Sept. 28, below earlier estimates of 65 cents to 70 cents a share. Growth for September, however, was up 8 percent to 9 percent, the company said.
Advo said its new growth initiatives — including partnerships with newspapers, second in-home date programs and its rural expansion mailing program — continue to perform well.