Thursday, Lender Processing Services, Inc. (LPS), a technology provider to mortgage and real estate industries, reported higher third-quarter profit and revenues that beat Street estimates, aided by double-digit revenue growth in two of its business segments. The company also provided guidance for the fourth quarter and full year 2009.
The Jacksonville, Florida-based company's third-quarter net income increased to $75.5 million from $51.28 million a year ago. Third-quarter earnings per share were $0.78.
On a non-GAAP basis, third-quarter net income increased to $80.2 million or $0.83 per share from $57.8 million or $0.61 per share in the third quarter of 2008. Adjusted net earnings includes an adjustment for purchase amortization of $0.05 per share, while the prior-year quarter included a similar adjustment of $0.07 per share. On average, nine analysts polled by Thomson Reuters estimated earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.
Consolidated revenues for the third quarter rose 32.7% to $619.4 million from $466.76 million in the year-earlier period. Analysts expected revenues of $573.15 million for the quarter.
Operating income improved 32.6% to $143.6 million from $108.29 million in the third quarter of 2008.
Segment wise, revenue from Technology, Data, and Analytics segment increased 24.4% to $186.3 million from the previous-year quarter. Revenue from Loan Transaction Services segment increased 32.1% to $440.5 million from the third quarter of 2008.
Net corporate expenses climbed to $20.3 million from $15.6 million a year ago, primarily due to higher incentive expenses driven by the strong operating results.
For the nine-month period, the company's net income increased to $200.83 million from $176.56 million while revenue for the period climbed to $1.76 billion from $1.36 billion.
Looking ahead, the company expects fourth-quarter adjusted earnings in the range of $0.77 to $0.79 per share. Analysts, on a consensus, expect earnings of $0.77 per share at present.
For full year 2009, the company estimates revenue growth of 26% to 28% compared to 2008 and adjusted earnings in the range of $3.07 to $3.09 per share. On a consensus, analysts currently expect earnings of $3.00 per share on revenues of $2.27 billion.
LPS closed Thursday's regular trading at $40.81, down $0.39 or 0.95%, on a volume of 1.14 million shares on the New York Stock Exchange.
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