Metris (MXT) said its first-quarter profits fell, and the company warned that its yearly results would be lower than previously expected.
The financial services company reported first-quarter operating income of $52.3 million, or 54 cents a share. These numbers were in line with analyst estimates according to Thomson Financial/First Call, but were down 7% from the company's year-ago results of $56 million, or 57 cents a share.
The company's primary credit card business decreased by $133.5 million in the first-quarter even as the company added 145,000 new accounts.
Metris also reduced its first-quarter net income by $14.5 million, or 15 cents a share, due to accounting changes requiring the company to recognize all derivatives as assets or liabilities.Due to a weak economy and falling consumer demand, the company warned that it is reducing its 2002 full-year outlook to earnings of $1.75 to $2.25 a share. Analysts had been looking for $2.75, according to Thomson Financial/First Call. Shares of Metris were recently trading down 31.9% to $13.00 in Instinet premarket trading after closing at $19.10 on Tuesday.