reported higher second-quarter earnings and predicted continued favorable comparisons for the rest of the year, but the company's shares were lower a day after the real estate, travel and financial services firm posted its results.
The company earned $382 million, or 37 cents a share, in the second quarter, up from a profit from continuing operations of $239 million, or 23 cents a share, in the year-ago period.
Because of the better-than-expected results, including improving travel trends, Cendant raised its projections for the full year. The company now believes 2003 earnings from continuing operations will total $1.37 to $1.39 a share, compared with its prior forecast of $1.35 to $1.37.
Cendant also expects net cash provided by operating activities of $4.5 billion to $5 billion and free cash flow of at least $2 billion for the year.
Revenue should reach $17.5 billion to $18.2 billion this year, up from $14.1 billion in 2002, Cendant said. The company predicted third-quarter earnings of 44 cents to 45 cents a share and a fourth-quarter profit of 26 cents to 27 cents a share.
Analysts polled by Thomson First Call were looking for earnings of 35 cents in the second quarter. Wall Street expects Cendant to earn 45 cents in the third quarter, 27 cents in the fourth quarter and $1.37 for the full year. The consensus 2003 revenue forecast is $17.7 billion.
Shares of Cendant were losing 39 cents, or 2.2%, to $17.26 on the
New York Stock Exchange