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Concord EFS

(CE) - Get Free Report

, its shares hammered last week after a management shakeup, said Tuesday its earnings were in line with forecasts but that 2003 was shaping up less well.

The debit-card transaction service provider said it earned $89.1 million in the latest quarter, compared with $89.8 million a year ago. Because of a decrease in its outstanding shares, EPS rose to 18 cents in the latest quarter from 17 cents a year ago. Analysts surveyed by First Call had been forecasting earnings of 18 cents a share.

For 2003, the company predicted it will earn 75 cents to 79 cents a share, excluding items, which compares with the First Call consensus of 82 cents.

"Our revised forecast is based on an ongoing low interest-rate environment, continued uncertainty about the economy, and our expectations that intensifying competition will increase price compression and raise the cost of renewing customer contracts," Concord EFS said in a statement.

Concerns about the company's ability to compete with the likes of Visa contributed to a selloff that saw Concord's shares go from a close of $14.34 on Feb. 3 to a close of $11.55 Friday.