MEMPHIS, Tenn. -- Transaction processor Concord EFS Inc. (NYSE:CE - News), said its earnings per share rose slightly in 2002's fourth quarter, but warned it would miss 2003 earnings estimates on increased competition from Visa U.S.A. and others.
Concord said its fourth quarter earnings were $89.1 million, or 18 cents per share, on revenues of $605.8 million, compared with $89.8 million, or 17 cents per share, on revenues of $472.4 million, a year earlier. The company had fewer shares in the most recent quarter.
During 2002's fourth quarter, Concord purchased 22.4 million shares of its stock at an aggregate cost of $325.1 million. For the full year 2002, a total of 26.9 million shares at an aggregate cost of $393.5 million were purchased and retired. Concord's Board of Directors has authorized the purchase of up to $500 million of Concord's stock.
Full-year earnings for 2002 were $300.8 million, or 57 cents a share, versus $216.4 million, or 42 cents a share, for 2001.
Last week, the company's shares plunged after it made several top management changes. (See related story Concord makes management changes, previews '02 earnings)
Concord said it now expects 2003 earnings per share to be between 75 cents and 79 cents. Analysts expect the company to earn 82 cents a share for the year.
Bond Isaacson, Concord's co-chief executive, said in a statement that the company's revised estimate is based on "an ongoing low interest-rate environment, continued uncertainty about the economy, and our expectations that intensifying competition will increase price compression and raise the cost of renewing customer contracts."
