By: E&P Staff Advo Inc., the direct mailer that is a fierce competitor with newspapers in some markets and a partner in others, is revising downward its earnings expectations for the full fiscal year ended Sept. 24, 2005.
After markets closed Tuesday, Windsor, Conn.-based Advo said its diluted earnings per share is now expected to be in the range of $1.25-1.29 on an "as reported" GAAP basis, and $1.32-1.36 excluding the realignment charge of $0.07 incurred in its third fiscal quarter.
Advo's previous guidance was in the range of $1.46-1.48 excluding the realignment charge.
Advo said the lowered expectations are "due to lower-than-expected profits in its fourth fiscal quarter resulting from product mix shifts towards lower margin products and lighter weight preprint circulars, increased bad debt expense, and to a lesser extent losses related to hurricanes Katrina and Rita."
Revenue for the full fiscal year 2005 is expected to be up approximately 11% over the prior year period, Advo said, noting this was within the range of previous revenue guidance. Advo's 2004 revenues were about $1.2 billion.
For the fourth fiscal quarter ended September 24, Advo said it expects revenue growth of approximately 7%, and diluted E.P.S. of approximately $0.24-0.28.
Advo also said it has modified its guidance policy and will no longer be providing forward-looking revenue and earnings guidance.
Advo will release final results for the fourth quarter after markets close Oct. 25.
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