UPDATE 2-First Advantage 2nd-qtr profit falls
(Adds conference call details)
July 28 (Reuters) - First Advantage Corp FADV.O, a provider of screening services, reported a 32 percent fall in quarterly earnings, hurt by a challenging mortgage industry and weak U.S. labor market, and it also lowered its 2008 outlook.
The second-quarter net income was $12.4 million, or 21 cents a share, compared with $18.3 million, or 31 cents a share, a year ago. Income from continuing operations was 23 cents a share.
Analysts expected the company to post earnings of 30 cents a share, excluding special items, according to Reuters Estimates.
Results include a restructuring charge of $1.7 million primarily relating to consolidation of facilities in the employer services and lender services segments.
Total revenue fell 7 percent to $195.5 million. Analysts expected revenue of $215.6 million.
Lender services revenue fell 23 percent to $33.7 million, and data services revenue fell 14 percent to $27.9 million.
The company lowered its 2008 earnings outlook from continuing operations to $1.10 to $1.18 a share. The company had previously forecast earnings of $1.27 to $1.32 a share for the year.
Analysts on average expected earnings of $1.21 a share, before items.
The company, which has been streamlining operations, said it will close a facility in lender services segment in the fourth quarter and expects to record shutdown costs of $1.6 million, or 2 cents a share, in the second half of the year. (Reporting by Ratul Ray Chaudhuri in Bangalore; Editing by Anil D'Silva)
