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Cendant reports 1Q profit
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May 5, 1998: 9:22 a.m. ET
But higher-than-expected results may be subject to accounting revision
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NEW YORK (CNNfn) - Cendant Corp., which is still reeling from last month's shocking disclosure of possible accounting irregularities, reported first-quarter profits Tuesday that slightly exceeded expectations.
However, the previously announced investigation into the irregularities may adjust the latest first-quarter results. The restatement is expected to be completed by the summer.
As a result, Cendant has postponed its annual shareholders meeting, previously scheduled for May 19. The company expects to reschedule the meeting for autumn 1998.
The Parsippany, N.J.-based marketing company -- formed by the $14 billion merger of CUC International and HFS Inc. -- reported net income of $229.5 million, or 26 cents a share, on revenue of $1.44 billion.
Analysts had a consensus forecast of 25 cents a share, according to First Call.
Comparable figures for the year-ago period weren't provided because of the expected revision.
Still, Cendant emphasized that more than 80 percent of its net income in the latest quarter came from business units not impacted by the potential accounting irregularities.
Net income for those businesses totaled $189.1 million, more than double the $91.1 million recorded in the year-ago period.
Revenue for those units totaled $699.6 million, up 35 percent from the $520.0 million a year earlier.
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Cendant
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