Providian's Profit Tops Estimates

The company also says it hopes to complete the sale of $859 million in credit card loans in the next few weeks.
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Providian Financial

(PVN)

posted lower earnings and revenue in the second quarter, and the company said it hopes to complete the sale of $859 million in credit card loans in the next few weeks.

In the second quarter, the company earned $39 million, or 13 cents a share, including the anticipated sale of the credit card loans, resulting in a charge of about $8 million, or 3 cents a share. Providian earned $153.9 million, or 53 cents a share, last year.

Total net revenue, on a reported basis, totaled $521.1 million in the second quarter, down from $718.3 million a year ago. On a managed basis, revenue totaled $1.04 billion, compared to $1.32 billion in the 2002 second quarter.

"Reported" revenue is the figure that agrees with generally accepted accounting principles. The "managed" numbers are derived by adjusting the reported financial information to include securitized loan balances and the related finance charge and fee income, credit losses and net interest costs.

Factoring in the sale of the credit card loans, Providian now expects full-year earnings of $175 million to $180 million.

Analysts polled by Thomson First Call expected a profit of 10 cents a share in the second quarter. The full-year consensus forecast is 62 cents a share.