Getty Images (GYI) missed second-quarter revenue targets and warned of soft sales for the rest of the year.
The Seattle-based image company made $22.3 million, or 35 cents a share, for the quarter ended June 30, down from the year-ago $34 million, or 53 cents a share. Revenue rose 10.5% from a year ago to $204.8 million.
Excluding stock-based compensation expense and losses on subleased property in New York and on the sale of short-term investments, latest-quarter earnings were 64 cents a share.
Analysts surveyed by Thomson Financial were looking for a 61-cent profit on sales of $207.4 million.
"We exhibited revenue growth across all regions and in all businesses during the quarter, while making great progress and executing on all our key initiatives for the year," said CEO Jonathan Klein. "Furthermore, our business model continues to excel as we exploit the opportunities that come from our leadership position. Our continuing innovation in products, services and technology, together with our total focus on delighting our customers, remain the key ingredients to our success in the past, now and in the future."
Excluding the effects of changes in currency exchange rates, revenue rose 12.8%. Cost of revenue fell to 24.8% from 26.7% in the prior year.
The company said it expects to make 64 to 66 cents a share for the third quarter on sales of $205 million to $210 million. Analysts were looking for a 67-cent profit on sales of $213 million.
Getty expects to make $2.63 to $2.70 for the year on revenue of around $825 million. Analysts were looking for $2.59 on $838 million.
Getty rose 95 cents Tuesday to $55.20 before being halted in late trading.