ChoicePoint Swings to Loss

Shares fall 3%.
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(CPS) - Get Report

fell 3% Tuesday after the information technology outfit swung to a loss in its third quarter.

The company lost $72.2 million, or 86 cents a share, in the quarter, compared with a gain of $39.6 million, or 43 cents a share, a year ago. Excluding asset impairment and related charges and expenses related to stock options and fraudulent data access, earnings from continuing operations were 46 cents a share in the most recent quarter. On that basis, analysts surveyed by Thomson First Call were expecting earnings of 43 cents a share.

Third-quarter revenue rose 4.1% from a year ago to $246.7 million as against analysts' expectation of $253.4 million.

The Alpharetta, Ga.-based company expects full-year internal revenue growth to be in the 4% to 6% range, exclusive of any 2006 acquisitions. Including the acquisitions, total revenue growth is expected to be in the range of 5% to 7%. Operating margin is expected to be about 26% to 27% for full year 2006, excluding the stock option, legal and other expenses. Analysts estimate revenue of $971.8 million for 2006.

Shares fell $1.15 to $34.53.

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