Viad sees difficult 2Q, but reiterates full-year outlook

Viad expects second-quarter earnings per share in a range of 37 cents to 48 cents, down sharply from year-ago adjusted profit of 87 cents per share and the average estimate of 62 cents per share forecast by analysts polled by Thomson Financial.

Revenue is expected between $255 million and $275 million, compared with $275.7 million in the year-earlier quarter. The company said part of the reason for the weak second quarter is expected operating losses at Baltimore-based Becker Group, a brand development or "experiential marketing," company acquired by Viad in January.

After the second quarter, though, Viad expects growth.

Chief Executive Paul B. Dykstra said the company's GES Exhibition Services segment "will benefit from significant positive show rotation and the implementation of cost reduction efforts."

That, along with a lower tax rate, should produce full-year 2008 earnings per share in line with its previous guidance of $2.17 to $2.32. Last year, the company earned adjusted profit of $1.88; analysts are forecasting earnings per share of $2.28.

Revenue is expected to increase at a low double-digit rate from 2007's $1 billion.