Reader's Digest Revises Earnings

  • October 21, 2002
The Reader’s Digest revised its earnings guidance for Q1 2003 and its fiscal year that will end next June 30. The Pleasantville, N.Y.-based company will book revenues and operating profit with its Reiman Publications book-marketing programs in Q2 and not Q1, which ended Sept. 30. So $25 million in revenues and $16 million in operating profits from Reiman Publications will be realized in October and not September, resulting in a shift of 10 cents per share from Q1 to Q2. Its full year earnings per share estimates of $1.20 to $1.30 won’t be affected, the company said. The first quarter was the first full reporting period to include results from Reiman since it was acquired by Reader's Digest in May 2002. Previous forecasts for Reiman were based on Reiman's longstanding approach to revenue recognition, dating to when the company was privately held.
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