Reader's Digest (RDA) said Thursday that its fiscal first-quarter loss widened.
The Pleasantville, N.Y.-based company lost $26.7 million, or 29 cents a share, in the quarter, compared with $8.2 million, or 9 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting a loss of 19 cents a share.
First-quarter revenue rose marginally to $517.1 million, compared with $516.4 million a year ago.
The company expects to earn 88 cents to 98 cents a share for the full year 2007. Analysts were expecting earnings of 90 cents a share for the full year.
During the quarter, the company lost $29.6 million from its operation, compared with $6.8 million, a year ago.
"Operating results were down in the quarter versus last year, although slightly better than our internal expectations. As we guided in the fourth quarter of Fiscal 2006, much of the decline reflects a planned shift in timing and mix of customer-acquisition-related marketing activities and increased investment spending on new initiatives, including Every Day with Rachael Ray, Daheim in Deutschland and Taste of Home Entertaining. These new initiatives collectively will contribute substantial revenues in Fiscal 2007," the company said.
The compny's stock closed down 12 cents, or 0.8%, at $14.78 Thursday.
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