BearingPoint falls after cutting 2008 outlooks

Late Monday, the McLean, Va., company reported a smaller first-quarter loss than analysts had expected, but its revenue fell short of Wall Street estimates. BearingPoint then forecast a loss of lose $70 million this year. Revenue is expected to be about equal to last year's total of $3.46 billion.

On average, Thomson Financial reports that analysts expect $3.44 billion. The company previously said it might post modest revenue growth this year and said results would range between a profit of $1 million and a loss of $70 million.

Shares skidded 25 cents, or 13.4 percent, to $1.61 Tuesday.

Citi Investment Research analyst Patrick Burton downgraded the stock to "Hold" from "Buy." While the company's total loss was smaller than expected, Burton said, its operating income came up short of his estimates.

He said key clients are reducing spending, and as a result, BearingPoint's revenue is likely to get weaker over the next year. Burton said it may take the company two years to turn its business around and added that it is a bad sign that the company lowered expectations so early in the year.