UPDATE 2-Hewitt raises FY09 EPS view, shares rise

* Q3 EPS $0.71 vs est $0.60

* Net revenue falls 6 pct

* Raises full-year earnings forecast

* Says leaving revenue outlook unchanged

* Shares rise 5 pct (Adds conference call details, updates share movement)

Aug 4 (Reuters) - Human-resource services company Hewitt Associates Inc HEW.N posted third-quarter profit that beat market expectations, helped by lower expenses, and raised its full-year earnings outlook by 10 cents, sending its shares up 5 percent.

Excluding items, Hewitt now sees fiscal 2009 earnings of $2.55 to $2.65 per share, up from its prior view of $2.45 to $2.55 per share.

"We are leaving our revenue outlook unchanged reflecting some softness in discretionary client spending offset by favorable foreign exchange," Chief Financial Officer John Park said in a statement.

The company expects low- to mid-single digit percentage decline in consolidated net revenue.

Hewitt -- whose three segments are benefits outsourcing, human resource business process outsourcing (HR BPO) and consulting -- said it sees some stability even amid a downturn as a good portion of its participant base is pension record keeping. In pension record keeping, the number of participants does not change with the employment levels, Chief Executive Russ Fradin said in a conference call with analysts.

Hewitt's acquisition pipeline remains active, he added. Watson Wyatt Worldwide WW.N, which was one of the key rivals of Hewitt, merged with consulting firm Towers Perrin Forster & Crosby in June, prompting analysts to say the deal could trigger further acquisitions in the sector. [ID:nBNG496470]

"We look for nice tuck-in acquisitions as opposed to going elephant hunting," Fradin said.

Q3 PROFIT TOPS STREET For the third quarter ended June 30, net income rose to $68.4 million, or 71 cents a share, compared with $48.2 million, or 48 cents a share, a year ago.

Net revenue fell 6 percent to $729.0 million.

Analysts on average were expecting earnings of 60 cents a share, before special items, on revenue of $733.6 million, according to Reuters Estimates.

Selling, general and administrative expenses fell 42 percent to $30.3 million in the quarter.

Revenue at the company's HR BPO segment was down 12 percent at $115.7 million, due to client losses and liquidations.

Accenture (ACN.N) is one of Hewitt's key competitors in the HR BPO segment, that provides web-based tools for self-management of human resources programs by employees, managers, and HR professionals.

Shares of the company were up 96 cents at $31.20 Tuesday afternoon on the New York Stock Exchange. They earlier touched a high of $31.66. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Aradhana Aravindan)