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How State Taxes Put a Bigger Pinch on the PoorOn Wednesday, both Denny's Corp. (NASDAQ: DENN) and Waste Management Inc. (NYSE: WMI) reported a rise in fourth-quarter profits.
But excluding restructuring charges, asset sale gains, and other one-time items, restaurant operator Denny's net income was $3.4 million, or 3 cents per share, down from $7.3 million in the same quarter a year-ago. Revenue fell 10% to $220.3 million from $244.4 million last year. Analysts polled by Thomson Financial had expected a profit of 4 cents per share on revenue of $216.4 million.
For the year, net income rose 14% to $34.7 million, or 35 cents per share, from $30.3 million, or 31 cents per share in 2006. Revenue fell 6% to $939.4 million from $994 million.
The company also said it expects revenue to fall in 2008 as it continues to sell restaurants to franchisees.
After falling in early trading Wednesday, shares closed up 15 cents, or more than 4%, to $3.58.
Waste Management, the nation's largest refuse hauler, reported that its profit rose 26% as tax benefits and the sale of some operations offset higher fuel prices. Earnings rose to $309 million, or 61 cents per share, in the quarter that ended December 31, from $246 million, or 46 cents per share, a year earlier. Excluding special items, profit for the period was $276 million, or 54 cents per share, which beat analysts' expectations of 51 cents per share, according to Thomson Financial.
For all of 2007, net income was $1.16 billion, or $2.23 a share, compared with $1.15 billion, or $2.10 a share, a year earlier. Full-year sales were relatively flat at $13.3 billion.
Waste Management forecast that 2008 earnings will increase to a range of $2.19 to $2.23 a share, compared to the current Wall Street estimate of $2.21 a share.
On Wednesday, shares rose 91 cents, or almost 3%, to close at $34.04.
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