that took all of 2 seconds reading, at 7 PE its priced about...

that took all of 2 seconds reading, at 7 PE its priced about right allowing for funding costs, they better get this sale to go through, I cant believe they included a one off gain in the EPS, what a absolute joke!

Macquarie analysts, with an underperform recommendation, estimated ABC's forecast included $75 million-plus gains on asset sales and underlying centre guidance was closer to 20 per share.

SHARES in childcare operator ABC Learning Centres trimmed slightly yesterday following a profit downgrade and ongoing analyst concerns about disclosure.

Researchers at three major brokers either kept or reduced recommendations on Brisbane-based ABC after Tuesday afternoon's announcement that full-year earnings per share would be 34-36 cents.

The downgrade came despite ABC on March 7 reaffirming earlier guidance of 15 per cent EPS growth to 41 per cent, although some analysts had thought this a stretch.

The downgrade was linked to slowing new centre purchases and deferring $150 million in property sales following tough market conditions.

But ABC maintained it was complying with banking agreements and talks continued to sell a majority stake in US operations.

ABC shares, which have fallen from 2006 highs of $8.80, yesterday dropped 4.5 cents to $1.55.

Citigroup analysts, with a hold recommendation, were "surprised" to learn potential profits from a UK voucher business had been incorporated in current and earlier guidance, as plans to sell the business had not been aired in February.

"Governance and disclosure issues" remained, they said.

Macquarie analysts, with an underperform recommendation, estimated ABC's forecast included $75 million-plus gains on asset sales and underlying centre guidance was closer to 20 per share.

They said new fund-raisings "can't be ruled out".

They said ABC's valuation could jump if the US deal succeeded.

UBS analysts, with a buy recommendation, were seeking clarity on some half-year results released in February to establish underlying trading.

ABC said it had been unable to undertake a planned results roadshow due to the US sale proposal, which also came late February, and would clarify queries as soon as possible.