UPDATE 1-Viad Q2 profit tops Street, but sees Q3 below estimates

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July 25 (Reuters) - Viad Corp (VVI.N), a convention and event services company, reported second-quarter profit way above analysts' view on strong revenue growth at one its business segments, but forecast third-quarter profit below Wall Street expectations.

Net income for the quarter was $12.9 million, or 62 cents a share, compared with $18.5 million, or 88 cents a share, a year earlier, the company said. From continuing operations, the company earned 63 cents a share.

Earnings before a gain on a tax matter was 59 cents.

Revenue for the second quarter was $277.2 million, Viad said.

Analysts expected the company to earn 43 cents a share, before special items, on revenue of $268.5 million, according to Reuters Estimates.

Revenue for the experimental marketing services segment rose about 7 percent, mainly driven by a $3.6 million rise in Exhibitgroup/Giltspur's second-quarter revenue, a unit Viad acquired in January this year.

For the third quarter, the company expects to earn 64 cents to 74 cents, which is below analysts' estimates of 79 cents.

Viad also said it expects to report revenue of $286.0 million to $309.0 million in the third quarter, in line with analysts' estimates of $287.9 million.

The company reiterated its full-year 2008 earnings outlook of $2.17 to $2.32 per share.

Analysts expect the company to earn $2.21 a share in 2008.

Shares of the Phoenix, Arizona-based company closed at $28.09 Thursday on the New York Stock Exchange. (Reporting by Anurag Kotoky in Bangalore; Editing by Bernard Orr)