Cendant Says Fourth Quarter Will Meet Expectations

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Franchising firm

Cendant

(CD)

says it expects fourth-quarter earnings in line with expectations, as well as long-term earnings-per-share growth of 13%.

Cendant, which separately

announced plans to acquire car-rental company

Avis Group Holdings

(AVI)

for $935 million, says fourth-quarter adjusted earnings, excluding results from online unit

move.com

, will be 18 cents a share, compared with 30 cents a share in the same period last year. For the full year, Cendant says it should post earnings of 90 cents a share from continuing operations, compared with $1.04 a share for 1999.

The growth rate in 2001 will be affected by incremental interest from the settlement of a class-action lawsuit over accounting irregularities in its former

CUC International

business unit. Cendant agreed to pay the class members $2.83 billion in cash.

The company sees earnings-per-share growth of about 16% in 2002 over 2001, including the impact of this interest and the full-year benefit of its pending Avis Group and

Fairfield Communities

acquisitions.

Cendant also expects 5% to 7% growth in long-term revenue and 10% growth in earnings before interest, taxes, depreciation and amortization, or

EBITDA .