Cendant posts 24 percent jump in adjusted profits
NEW YORK, April 18 (Reuters) - Real estate and travel franchising giant Cendant Corp. (NYSE:CD - news) posted a
higher than expected 24 percent jump in first-quarter operating profits on Tuesday amid strong growth in its online
operations.
Cendant said it was comfortable with Wall Street's earnings targets for the year on the back of strong quarterly results. The
company had net income, including unusual items, of $69 million, or 9 cents per share for the three month period compared with $362 million, or 43 cents per
share, a year ago.
Excluding costs of its new move.com unit and other unusual items, Cendant had profits of 26 cents per share. That beat Wall Street's estimate of 23 cents,
according to a poll of eight analysts by First Call/Thomson Financial.
New York-based Cendant, which settled the largest class action suit in U.S. corporate history in December, has made significant steps to bring its traditional
business lines to the Internet by moving its data and services onto the Web and starting online divisions.
``Cendant is doing great things and the market hasn't recognised it,' said Paul Penney, analyst at Robertson Stephens, in comments before the results. Penney
noted that Cendant's stock is undervalued, closing at 16 on the New York Stock Exchange, near its low of 13-11/16. |
