Thursday, August 12, 1999

Federated has 30% rise in earnings per share




BY LISA BIANK FASIG
The Cincinnati Enquirer

        Federated Department Stores posted a 30 percent increase in earnings per share in the second quarter, completing what chief executive James Zimmerman called “the best start to a year that any of us can remember.”

        The parent of Lazarus, Macy's and Bloomingdale's said net income rose 27 percent, to $137 million from $107 million in the same quarter last year. On a diluted per-share basis, that's 61 cents, up from 47 cents last year. Analysts had estimated quarterly share earnings at 57 cents a share.

        Sales in the quarter rose 17 percent to $4.1 billion from $3.5 billion. On a same-store basis, sales rose 5.9 percent in the quarter and 5 percent for the year.

        Sales and profits include those at Fingerhut Cos. Inc., the Internet and catalog company that Federated acquired in March. Broken down, quar terly direct-to-consumer sales were $437,000, and department store sales were $3.7 million.

        After the report, analysts surveyed by First Call Corp. revised earnings expectations positively. Estimates for third-quarter share earnings were revised to 52 cents from 50 cents. For the year, estimates put share earnings at $3.47, vs. $3.39 before the quarterly announcement.

        In another report:

        • Pomeroy Computer Resources Inc.: The Hebron, Ky.-based computer sales and service provider reported higher sales and earnings for the second quarter.

        For the three months ended July 5, Pomeroy said net earnings increased to $5.7 million, or 48 cents a share, from $5 million, or 42 cents a share, a year ago. Revenues increased 18 percent to $186.8 million from $158.8 million a year ago.

        Enquirer reporter Mike Boyer contributed to this report.

       



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- Federated has 30% rise in earnings per share
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