Earnings Grow at Cendant

Cendant (CD) bested second-quarter estimates, as the company rode the continued strength in the residential real estate market.

The company said after the bell Wednesday that net income nearly doubled to $691 million, or 66 cents a share, from $382 million, or 37 cents a share a year earlier.

The company's latest quarter included a gain of $198 million for selling its Jackson Hewitt Tax Service unit. Excluding this, the company earned $493 million, or 47 cents a share. On this basis, analysts had expected the company to earn 41 cents a share.

Revenue rose to $5.21 billion from $4.59 billion, edging the consensus estimate of $5.02 billion.

"The combination of prolonged strength in the residential real estate market and the early stages of a rebound in travel spending, together with solid execution on our strategies enabled our core real estate and travel verticals to perform ahead of expectations," said Chairman, Chief Executive and President Henry R. Silverman.

As a result of the second-quarter results and an improved outlook for the remainder of the year, the company said it expects full-year earnings from continuing operations to rise about 25% to $1.70 to $1.74 a share.

Cendant shares closed down 23 cents to $23.95.

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