Solera Holdings Profit Down, Forecast Up

August 26, 2011

Solera Holdings Inc., which makes software to process auto insurance claims, said Wednesday that profit in the June quarter fell 7.2 percent on higher costs, but the company offered an upbeat forecast for its new fiscal year.

Solera said it expects to earn between $2.85 and $2.90 per share in the fiscal year that ends in June 2012. Analysts were expecting $2.81 per share.

The company predicted revenue of $822 million to $832 million in the new year, while analysts expected $810.6 million, according to FactSet.

For the company’s fiscal fourth quarter, which ended June 30, net income was $17.2 million, or 24 cents per share, compared with $18.6 million, or 26 cents per share, a year earlier.

Excluding items such as acquisition and restructuring costs, depreciation and tax provisions, the company said adjusted earnings would have been 62 cents per share.

Revenue rose 17.7 percent to $182.1 million from $154.7 million. Revenue rose across the board – from insurance companies, repair shop customers, independent assessors and salvage yards.

But operating costs, overhead, programming and other expenses also climbed.

Analysts expected adjusted earnings of 59 cents per share and revenue of $175.8 million in the quarter.

For the full fiscal year that just ended, the company earned $157.4 million on revenue of $684.7 million, up from $84.4 million on revenue of $631.3 million the year before.

The company’s stock rose 40 cents to close at $56.55 before the release of results.

Was this article valuable?

Here are more articles you may enjoy.