UPDATE 3-ACS profit beats expectations but outlook soft

Thu Apr 30, 2009 11:51pm BST
 
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* Fiscal Q3 EPS ex. items $1.00 vs market view of $0.93

* Q3 revenue $1.61 billion, slightly below expectations

* Sees Q4 EPS ex. items $0.95-$0.97, below expectations

* Shares unchanged after-hours (Adds outlook, updates share move)

NEW YORK, April 30 (Reuters) - Affiliated Computer Services Inc (ACS.N) posted a stronger-than-expected rise in quarterly profit thanks to demand for business process outsourcing and technology services, but it gave a soft outlook due to weak business spending.

The Dallas-based technology outsourcing company said fiscal third-quarter net income rose to $93.2 million from $82.6 million a year ago, as earlier contracts began delivering profits.

Excluding items, earnings for the quarter, ended March 31, rose to $1 a share from 91 cents a share, above the average analyst forecast of 93 cents, according to Reuters Estimates.

The company, which had forecast quarterly earnings excluding items of 92 cents to 95 cents, said cost-cuts also helped.

But the company forecast fourth-quarter earnings, excluding items, of 95 cents to 97 cents, below the market's forecast of $1.05.  Continued...

 

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