(RTTNews) - Hewitt Associates, Inc. (HEW: News ), a provider of human resource benefits, outsourcing, and consulting services, Tuesday reported a sharp rise in its fourth-quarter profit on lower operating costs, despite a decline in net revenues. The company also provided an underlying earnings per share outlook for fiscal 2010.

The company's fourth-quarter net income was $64.42 million, or $0.68 per share, compared with $31.55 million, or $0.32 per share in the prior-year quarter.

Underlying net income for the prior-year quarter was $48.3 million, or $0.49 per share, adjusting for unusual items.

The company also reported operating income growth of 95% to $105.8 million from $54.3 million in the prior-year quarter. Underlying operating income grew 23% after adjusting for prior-period unusual items.

The company's net revenues declined 6% in the fourth quarter to $757.74 million from $806.69 million in the prior-year quarter. Total revenues were $774.04 million, compared with $824.53 million last year.

Net revenues declined 4% after adjusting for foreign currency translation, acquisitions and divestitures, and third-party revenues in both periods, the company noted.

On average, analysts polled by Thomson Reuters expected a profit of $0.63 per share on revenues of $754 million for the company. Analysts' estimates typically exclude one-time items.
In the preceding third quarter, the company's net income was $68.40 million or $0.71 per share on net revenues of $729 million.

Commenting on the results, Russ Fradin, chairman and chief executive officer of Hewitt Associates stated, "Revenues were resilient, and our focus on productivity over the past two years produced record operating profit, operating margin and earnings per share. We also delivered strong sales, improved client satisfaction and generated strong free cash flow."

Based on business segments, Benefits Outsourcing's revenues were $388.7 million compared with $387.9 million in the prior-year quarter. Revenues increased 1% after adjusting for $2.3 million of unfavorable foreign currency translation, driven by growth in large market and mid-market clients, partially offset by lower project revenue.

Human Resources Business Process Outsourcing, or HR BPO, segment revenues declined 16% to $113.9 million from $135.1 million last year. Revenues decreased 10% after excluding third-party supplier revenues in both periods and adjusting for items.

Consulting segment revenues were down 10% to $265.2 million from $295.8 million in the prior-year quarter. After adjusting for $12.3 million of unfavorable foreign currency translation and a $6.8 million contribution from an acquisition, consulting revenues decreased 9%. This decline was due to lower revenues related to Talent and Organizational Consulting services across all regions and Communication and Health Management services in North America. This was partially offset by growth in Retirement and Financial Management services in North America and Europe, the company noted.

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