Ceridian 3Q profit more than doubles

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Ceridian Corp said Thursday, Oct. 27 that its profit more than doubled in the third quarter from growth in both of its businesses. Third-quarter income jumped to $25.7 million, or 17 cents per share, from $10.9 million, or 7 cents, the year before.

Impairment and restructuring charges reduced latest-quarter earnings by 3 cents per share. Setting aside one-time items, the company’s adjusted profit beat the average estimate of 16 cents per share from analysts surveyed by Thomson Financial.

Revenue totaled $364.1 million, an 11 percent increase from $328.7 million a year earlier and topping analysts’ consensus target of $360.4 million. Its Comdata division, which offers fuel cards and cash advances to the trucking and retail industries, climbed 17 percent to $109.5 million.

Ceridian lifted its fourth-quarter forecast and now sees a profit of 24 to 26 cents per share, with revenue ranging from $380 to $390 million. It previously had forecast a range of 23 to 26 cents per share on revenue of $355 to $365 million.

For the year, the company narrowed the range and lowered the high end of its view, pegging its earnings between 78 and 80 cents per share, including a net benefit of 1 cent from items, compared with a previous estimate of 76 to 81 cents per share. Revenue is forecast to range from $1.46 to $1.47 billion, a boost on the lower end from the previous range of $1.45 to $1.47 billion.

Analysts currently predict quarterly income of 25 cents per share on $389.5 million in revenue, and full-year earnings of 77 cents per share on $1.47 billion in revenue.