UPDATE 1-Student Transportation Q3 profit up on lower fuel costs

Thu May 13, 2010 8:21am EDT

* Q3 EPS $0.07 vs $0.01 yr ago

* Revenue up 21 pct

May 13 (Reuters) - School bus transportation services provider Student Transportation Inc (STB.TO) reported a ten-fold rise in quarterly profit, helped mainly by lower fuel cost and new contract wins.

Though the company experienced some revenue deferrals from fewer school calendar days, it expects to recover a majority of the revenue and sees a strong fourth quarter, Chief Executive Denis Gallagher said. For the third quarter ended March 31, net income was $4.1 million, or 7 cents a share, compared with $362,000, or 1 cent a share, a year ago.

Revenue rose 21 percent to $77.7 million. Analysts on average were expecting earnings of 8 cents a share, on revenue of $76.6 million, according to Thomson Reuters I/B/E/S.

The company, which closed two acquisitions in the third quarter, said it is still reviewing various bid opportunities and a few targeted acquisitions. Shares of the Toronto-based company closed at C$5.26 Wednesday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal)

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