IT services provider KPMG Consulting met earnings per share expectations for its third fiscal quarter but saw its net income and revenue drop compared with the same fiscal quarter last year, the company announced Tuesday.
KPMG Consulting had a profit of $US0.15 diluted earnings per share, meeting the consensus of analysts polled by Thomson Financial/First Call for the company's third fiscal quarter, ended March 31, 2002.
Net income came in at $US23.7 million, down from $US29.5 million in the third fiscal quarter of last year. Revenue also dropped, to $US582.3 million, down 22 percent from $US750.9 million in the last fiscal year's third quarter.
KPMG Consulting's stock (KCIN) closed up 8.76 percent at $US17.50 on the Nasdaq exchange Tuesday. The quarter's results came out after the New York financial markets had closed.
Also Tuesday, the Wall Street Journal reported that KPMG Consulting is close to buying the consulting business of embattled Big Five accounting firm Arthur Andersen LLP. The Journal attributed the information to sources close to the negotiations.
When asked about the Journal story during a conference call held Tuesday afternoon to discuss the quarter's results, KMPG Consulting officials declined to comment on it.
KPMG Consulting, based in McLean, Virginia, was spun off as a separate public company from Big Five accounting firm KPMG LLP via an initial public offering in February 2001.