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Cendant boosts outlook
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December 10, 2001: 8:55 a.m. ET
Travel services firm raises 4Q, 2001, 2002 earnings per share forecast.
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NEW YORK (CNN/Money) - Travel services firm Cendant Corp. raised its outlook Monday for earnings per share in the fourth quarter above Wall Street estimates as it shook off some of the effects of the Sept. 11 terrorist attacks.
New York-based Cendant said it expects to earn 21 cents a share in the fourth quarter, compared with its previous forecast of 20 cents. Wall Street analysts surveyed by earnings tracker First Call expected Cendant to earn 19 cents a share.
The company, which owns Avis car rental and recently purchased Galileo International and Cheap Tickets, also said it expects to earn $1.04 per share in the full year 2001, compared with Wall Street estimates of $1.02. It expects to earn $1.25 a share in 2002, compared with analysts' expectations of $1.24.
Cendant also reiterated its long-term growth goals of 5 to 7 percent for revenue and 13 percent for earnings per share. It expects revenue in 2001 of between $8.7 billion and $8.9 billion, rising to between $10.5 billion and $11 billion in 2002.
Still, the Sept. 11 attacks, which shut down airline travel for days and is still hurting the travel industry months later, did have an impact on Cendant's fourth-quarter earnings. Before the attacks, the company expected to earn 24 cents a share in the quarter.
A $125 million after-tax charge in the quarter includes "rightsizing" made in response to slower travel and a sluggish economy. Included in that charge were costs for absorbing Galileo International and Cheap Tickets.
Cendant (CD: Research, Estimates) shares rose 55 cents Friday to $18.85. 
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