suffered a legal defeat Friday that will result in a charge of $17 million, or 2 cents a share, to fourth-quarter earnings.
The travel and real estate conglomerate said Monday that the Chancery Court of Tennessee ruled against its Progeny Marketing Innovations subsidiary in a contract dispute between Progeny and American Bankers Insurance Company of Florida.
Progeny has yet to decide whether to appeal the verdict.
Despite the charge, Cendant expects to meet previous EPS guidance of 32 cents to 33 cents when it reports earnings after the market closes Monday. On average, analysts expect Cendant to report EPS of 33 cents on revenue of $4.60 billion, according to Thomson First Call.
Cendant shares were up 14 cents, or 0.6%, at $22.56.