Hewitt Associates report jump in earnings

Hewitt Associates Inc., a Lincolnshire-based human resource services company, said Tuesday its first quarter earnings increased.

Hewitt posted net income for the first quarter ended Dec. 31 of $63.9 million, or 59 cents per diluted share, compared with $30.1 million, or 27 cents per diluted share, in the prior-year period.

Net revenues increased 9 percent in the first quarter, to $793.8 million, from $726.6 million in the prior-year quarter, Hewitt said.

As of Feb. 1, under its $750 million share repurchase authorization, the company had repurchased about 13.4 million of its outstanding common shares, for a total of about $454 million.

"The first quarter was a great start to our fiscal year," said Russ Fradin, chairman and chief executive officer, in a statement. "Our consulting business continued to generate healthy top-line growth, and our benefits outsourcing business gained revenue momentum and achieved strong margin growth."

"We were also pleased to see the loss from our (human resources business process outsourcing) business narrowing," Fradin said. "We continue to manage through some sensitive client situations, but, overall, we continue to think this will be a year of solid progress in that business."

That reported segment loss was $27.3 million in the first quarter, compared with a loss of $42.2 million in the prior-year quarter. The decrease in the loss was primarily due to an increase in revenue, the company said.

Hewitt reaffirmed its fiscal 2008 guidance previously issued in November, including mid-single digit total net revenue growth, underlying operating income of about $300 million to $315 million, and underlying earnings per share of $1.70 to $1.80.