Hair salon operator
said its earnings rose 40.7% in its fourth quarter, due to merger termination fees.
The company earned $41.5 million, or 90 cents a share, in the quarter, compared with $29.5 million, or 64 cents a share, a year ago. Adjusted with non-core benefits and charges, the company earned 60 cents a share in the most recent quarter. Analysts polled by Thomson First Call were expecting earnings of 59 cents a share in the most recent quarter.
Fourth-quarter revenue rose 7.2% to $636 million as against analysts' expectation of $639.2 million. Same-store sales, or sales at stores open at least a year, increased 0.1%.
The company expects to earn 44 cents a share to 48 cents a share on revenue of $630 million to $635 million in the first quarter of 2007 and $2.22 a share to $2.34 a share, excluding future possible acquisitions, on revenue of $2.6 billion for the full year. The company expects same-store sales to decrease 1% to flat in the first quarter and to increase 1% to 2% for full year.
Analysts forecast earnings of 55 cents a share on revenue of $628 million for the first quarter of fiscal 2007 and earnings of $2.38 a share on revenue of $2.64 billion for the full year.
During the fourth quarter, the company added a net total of 188 locations.
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