Tuesday, Arbitron Inc. (ARB), a media and marketing research firm, reported a 24.1% decline in earnings for the first quarter. Costs and expenses increased 19.1%, compared to the same period last year. The company also reaffirmed its earnings and revenue guidance for fiscal 2009.
Net income for the quarter declined 24.1% to $12.3 million from $16.3 million, in the corresponding period last year. Earnings per share declined 19.3% to $0.46 from $0.57 per share in the prior year quarter. Two analysts polled by Thomson Reuters expected the company to earn $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Excluding the $8.2 million pre-tax impact of the previously disclosed restructuring charge, earnings per share for the quarter were $0.65 per share.
Costs and expenses for first quarter rose 19.1% $75.4 million from $63.3 million in 2008, due to planned expenditures for the Portable People Meter ratings panels, the planned introduction of cell-phone-only household sampling in diary markets and expenses of $8.2 million related principally to severance and benefits for the reorganization and restructuring program announced in March 2009. Share-based compensation amounted to $1.9 million compared with $1.6 million in the same period last year.
Revenue grew by 4.7% to $98.5 million, from $94.1 million during the first quarter of 2008. Two Street analysts expected the company to report revenue for $105.8 million for the quarter.
For fiscal 2009, the Columbia, Maryland-based company said it continues to expect earnings per share to be in the range of $1.40 and $1.55, an increase of between 3% and 14% from $1.36 per share in 2008. Arbitron reaffirmed that it continues to expect revenue to increase between 6% and 10% from $368.8 million generated in 2008.
Street analysts currently expect the company to earn $1.49 per share on revenue of $400.35 million.
The company said earnings per share guidance for 2009 includes the impact of the previously disclosed pre-tax expense of $8.2 million, related to the restructuring program.
As a result of these initiatives, Arbitron expects to realize net savings during the last three quarter of 2009 approximately equivalent to the first quarter 2009 restructuring expense.
ARB is currently up $0.77 or 3.99% and trades at $20.08.
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