UPDATE 1-Dolan Media posts higher Q2 profit, raises FY outlook

* Q2 EPS $0.27 vs $0.17 yr ago

* Q2 revenue up 61 pct

* Sees FY revenue $254 mln-$258.5 mln

* Sees FY EPS $0.83-$0.91

August 4 (Reuters) - Dolan Media Co (DM.N) posted an 86 percent rise in second-quarter earnings, helped by the integration of its mortgage default processing operations, and raised its full-year outlook.

The company, which provides business information and professional services, earned $8.2 million, or 27 cents a share, compared with $4.4 million, or 17 cents, a year ago.

Cash earnings for the quarter was 37 cents a share.

Revenue surged 61 percent to $67 million.

Analysts were expecting the company to earn 18 cents a share, before items, on revenue of $62.5 million, according to Reuters Estimates.

As part of the integration, the company merged American Processing Co and the Barrett-NDEx organizations under one name - National Default Exchange, Dolan said in a statement.

The integration helped the company to grow professional services division revenues by 144 percent to $44.3 million.

The company raised its full-year cash earnings outlook to $1.21 to $1.29 a share from previous view of $1.09 to $1.19 a share.

The company now expects revenue of $254 million and $258.5 million compared with a previous forecast of $240 million to $252 million.

Analysts were expecting the company to post full-year earnings of 79 cents a share on revenue of $251.3 million.

Shares of the Minneapolis, Minnesota-based company closed at $13.80 Tuesday on the New York Stock Exchange. (Reporting by Manasi Phadke in Bangalore; Editing by Pradeep Kurup)