CheckFree 2Q Profit Climbs to $33.8M
Tuesday January 24, 5:46 pm ET
CheckFree Second-Quarter Earnings Rise to $33.8 Million on Stronger Servicing Fees
NEW YORK (AP) -- CheckFree Corp., which makes software allowing consumers to pay bills online, on Tuesday said fiscal second-quarter profit tripled on stronger servicing fees for its products.
For the three months ended Dec. 31, profit rose to $33.8 million, or 36 cents per share, from $13 million, or 14 cents a share, a year earlier. Excluding items such as stock-based compensation, CheckFree posted profit of 44 cents per share during the period.
Sales rose to $215.9 million from $185.8 million last year. Servicing fees charged to customers rose to $187.7 million from $164.2 million, while license fees edged up 2 percent.
Results surpassed Wall Street's average projection for profit of 41 cents per share on sales of $212.3 million, according to Thomson Financial. Analysts projections typically do not reflect certain charges.
"Transaction growth in the electronic commerce division was in line with our expectations while both portfolio growth in investment services and license sales in the software business were strong," said Chairman and CEO Pete Kight in a statement.
Looking ahead, CheckFree projected third-quarter profit between 27 cents to 30 cents per share -- or 36 cents to 38 cents, excluding certain charges. Sales are forecast between $217 million and $222 million.
Wall Street expects CheckFree to post profit of 33 cents per share on sales of $204.3 million during the third quarter.
The company raised full-year guidance to between $1.19 to $1.24 per share -- or $1.62 to $1.66, excluding items. Wall Street expects profit of $1.57 per share.
Shares spiked $3.68, or 8.3 percent, to $48.10 in aftermarket trading after closing higher by 3.1 percent to $44.22 on the Nasdaq. |
