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CNNfn after the bell
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February 8, 1999: 5:12 p.m. ET
PC Connection, Duane Reade beat estimates; HealthSouth takes charge
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NEW YORK (CNNfn) - Earnings once again upstaged all other after-hours news, with a wide range of companies posting results after the closing bell.
Direct marketer PC Connection Inc. (PCCC) blew Wall Street estimates away, posting a fourth quarter profit of $5 million, or 32 cents per diluted share. Analysts surveyed by tracking firm First Call had forecast earnings of 29 cents. For the same period last year, the retailer earned $3.9 million, or 27 cents per share. Sales climbed to $220.3 million from $167.1 million amid strong demand for computers and increases in average order sizes.
The information technology consulting firm Platinum Technology (PLAT) saw results in line with analysts' expectations. Net income for the fourth quarter of 1998, excluding charges, increased to $38.1 million, or 40 cents per diluted share, compared to $35.4 million, or 39 cents per diluted share, for the same quarter in 1997. Revenues soared to $314.7 million from $242.7 million. Looking ahead, the company said it plans to consolidate its investments and redeploy resources to its most profitable product lines. Platinum will suspend acquisitions to focus on existing businesses.
Outside of the technology sector, retailer Duane Reade Inc. (DRD) also reported a better-than-expected profit in the fourth quarter. The drug store chain posted a net income of $10.2 million, or 56 cents per diluted share, improving upon last year's loss of $549,000 or 5 cents per diluted share, for the same period. Analysts had predicted a profit of 52 cents. Revenues jumped to $188.8 million from $116 million for the same period last year. Same store sales in the fourth quarter of 1998 increased 6.1 percent over last year's fourth quarter. Duane Reade credited increased sales from new and acquired stores and higher gross profits from the sale of higher margin merchandise.
Playtex Products Inc. (PYX), maker of personal care products, unveiled earnings in line with Wall Street estimates in the fourth quarter. The company earned $5.9 million, or 10 cents per share, on sales of $156.8 million. In the comparable period last year, earnings totaled $1.3 million, or 3 cents per share, on sales of $111.7 million. Playtex said robust internal growth and acquisitions bolstered results.
In non-earnings news, outpatient health provider HealthSouth Corp. (HRC) announced it will take a one-time charge of approximately $310 million in the fourth quarter of 1998 as a result of recent sales and acquisitions. HealthSouth is in the process of selling and consolidating businesses that do not fit with its strategic focus. The company also said it will repurchase 70 million shares of its common stock worth about $1 billion through open market purchases, block trades or privately negotiated transactions. 
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