Telvent 4Q profit rises, helped by tax gain, but weak forecast sends shares lower

Telvent 4Q profit rises, helped by tax gain

ROCKVILLE, Md. — Spanish information technology company Telvent Git SA said Friday that its fourth quarter profit rose 3 percent as a tax benefit more than offset a decline in revenue.

But its 2010 forecast missed analyst estimates, and investors sent shares down sharply.

The company earned 16.3 million euros ($22.1 million), or 48 euro cents (65 cents) per share, in the quarter. That’s up from 15.8 million euros, or 49 euro cents per share, in the 2008 quarter.

The 2009 quarter included a tax benefit of 3.9 million euros ($5.3 million).

Excluding special items, profit in the latest quarter was 58 euro cents (83 cents.)

Revenue fell 15 percent to 227.5 million euros ($308.5 million) from 267 million euros.

Analysts polled by Thomson Reuters projected earnings of 81 cents per share and revenue of $360 million.

For the year, Telvent earned 39.1 million euros ($53 million), or 1.15 euros per share ($1.56 per share), compared with a profit of 30.2 million euros, or 1 euro per share. Revenue rose 9 percent to 791.1 million euros ($1.07 billion).

Telvent forecast 2010 earnings of 1.60 euros per share ($2.17 per share) to 1.63 euros per share ($2.21 per share). Analysts project income of $2.44 per share.

Shares of Telvent fell $3.63, or 10.9 percent, to $29.78 in afternoon trading. The stock has ranged from $8.64 to $41.65 over the past year.