UPDATE 1-Viad swings to Q4 profit, shares surge

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Feb 1 (Reuters) - Convention and event services company Viad Corp (VVI.N) swung to a quarterly profit, helped by strong performance at its GES Exposition Services and Exhibitgroup/Giltspur businesses, sending its shares up more than 20 percent. The company reported fourth-quarter net income of $3.6 million, or 18 cents a share, compared with a loss of $1.8 million, or 9 cents a share, a year ago. Income from continuing operations was 8 cents a share in the latest quarter.

Excluding gains from certain tax-related matters, the company reported earnings of 2 cents a share.

Revenue rose 39.6 percent to $215.5 million.

Analysts on average were expecting a loss of 11 cents a share, before special items, on revenue of $196.7 million, according to Reuters Estimates.

Trade show services provider GES posted a 46 percent rise in revenue to $157.4 million, while revenue from Exhibitgroup/Giltspur, which provides face-to-face marketing services, rose 25 percent to $50 million.

"Growth at GES was bolstered by the successful acquisition of Melville, and Exhibitgroup/Giltspur is realizing positive results from its turnaround efforts," Chief Executive Officer Paul Dykstra said.

Viad also forecast earnings of 75 cents to 86 cents a share in the first-quarter and $2.17 to $2.32 a share in 2008. It expects 2008 revenue to rise at a low double-digit rate, it said.

Analysts were expecting 2008 earnings of $2.27 and revenue of $1.08 billion.

Shares of the company rose $5.52 to $32.27 in morning trade on the New York Stock Exchange. (Reporting by Anant Vijay Kala in Bangalore; editing by Anil D'Silva)