Solera Profit Misses Estimate - Update

(RTTNews) - Business software maker Solera Holdings Inc (SLH), Tuesday reported a 54 percent drop in fourth-quarter profit, hurt by operating expenses that offset double-digit growth in revenue. Quarterly earnings fell short of Wall Street estimates, although revenue surpassed expectations.

The company provided some weak earnings guidance for the full year, but revenue expectations appear strong.

Solera provides software to insurance companies, collision repair facilities, automotive dealers, and households, among others.

Solera, based in Westlake, Texas, posted quarterly net earnings of $8.8 million or $0.13 per share, compared with $19 million or $0.27 per share last year.

Excluding items, adjusted earnings for the quarter were $48.6 million or $0.70 per share, compared with $47.2 million or $0.68 per share a year ago.

On average, 10 analysts polled by Thomson Reuters expected earnings of $0.80 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter rose 22.6 percent to $268 million from $218.5 million in the prior year. Analysts expected revenue of $265.8 million for the quarter.

Revenues from insurance company customers edged down 0.2 percent from last year, while revenues from collision repair facility customers climbed 13.3 percent.

Revenues from independent assessors rose about 6 percent, and revenue from automotive recyclers, salvage, dealerships gained 28.5 percent.

Total expenses for the quarter increased to $244 million from $188 million, due to higher selling and general expenses, depreciation costs, and interest and acquisition overheads.

For fiscal year 2015, Solera projects adjusted earnings of $3.17 to $3.32 per share and revenue of $1.15 billion to $1.17 billion. Analysts currently expect earnings of $3.39 per share for the year, on revenue of $1.13 billion.

Solera announced a a quarterly cash dividend of $0.195 per share.

Solera stock closed Tuesday at $67.29, up $0.99 or 1.49%, on a volume of 0.27 million shares on the NYSE. In after hours, the stock dropped $1.11 or 1.65%.