GYI was sold to private equity firm Hellman & Friedman for $ 2.4 Billion, at a premium of 55% over Jan 18 share price
Getty Images Inc. predicted on January 31 that its first-quarter profit will come in below Wall Street estimates, saying it expects to earn 45 cents per share in the period. Getty also predicted first-quarter revenue of about $220 million. Analysts had anticipated earnings of 54 cents per share on $217.3 million in revenue.
For the full year, Getty predicted earnings will either meet or fall below its 2007 profit of $2.10 per share, giving guidance between $2 and $2.10 per share.
The company expects revenue of about $900 million for the year, which compares to $857.6 million in revenue in 2007. Analysts expect earnings of $2.16 per share on revenue of $884.4 million for the year.
Shares of Getty Images Inc. soared after the company acknowledged it is exploring strategic alternatives and said it retained Goldman Sachs as a financial adviser. The New York Times reported that Getty has attracted interest from private equity groups including Kohlberg Kravis Roberts and Bain Capital, and that the company could fetch as much as $1.5 billion, according to the report.
Investors sent the stock up $2.81, or 12.8 percent, to close at $24.75, on 1/22.
Getty reduced its profit outlook for 2007 in August due to increased competition from discount providers. The company also reported a second-quarter net income of $33.7 million (56 cents per diluted share) and revenue of $218 million, which fell short of analyst expectations (58 cents per share and revenue of $219 million). The stock has been falling since this announcement was made. The company is expected to face intense competition from start-up stock photo and media companies and has already hit a multi-year low.
