Technology stocks were generally up for the second straight week, as first-quarter earnings reports continued to meet or beat Wall Street expectations in many cases.
It also appears that First Data Corp. is beginning to enjoy the fruits of its string of acquisitions, most notably last year's merger with First Financial Management Corp.
The Hackensack, N.J.-based payment processor reported first-quarter net income of $105.8 million, a 26% increase over the year-earlier period. Earnings per share, at 50 cents, equaled a consensus analyst estimate published by First Call Corp.
Company officials said merchant card transactions grew 53%, while cardholder accounts grew by 35%. Volume for international money transfers also rose, by 30%.
"Merged business areas are performing strongly in their respective markets and are creating new opportunities for clients and consumers," said chairman and chief executive Henry C. Duques.
Stephen P. White, an analyst at Dove Associates, Boston, credited First Data's robust earnings to a strong performance by Western Union, which had been a unit of First Financial.
Deluxe Corp., St. Paul, was another strong performer for the week after reporting better-than-expected earnings for the three months ended March 31. While Deluxe's profits decreased significantly - to $18.9 million, from $34.6 million in the year-earlier period, its earnings per share of 42 cents was 3 cents higher than First Call's projection.
Deluxe's sales for the period were nearly $488.1 million, a 4.9% increase from the same period last year.
"Revenues from financial institution check printing were up for the first time since the fourth quarter of 1992," said president and CEO J.A. Blanchard.
"Although competitive pricing continues to impact this market, we are seeing positive results" from new products and streamlining, Mr. Blanchard said.
One of Deluxe's competitors in the check printing business failed to meet earnings expectations. At 28 cents, John H. Harland Co.'s earnings per share fell 4 cents below the consensus estimate of 32 cents reported by First Call Corp.
The Atlanta-based company's first quarter net income was $8.4 million, compared to $12.8 million in the year-earlier period.
Dove Associate's Mr. White said the dip was in response to the company's ongoing efforts to restructure and develop new financial services.
Harland chief executive Robert J. Amman said the drop in earnings resulted from competitive pressures and higher paper costs. He added that Harland expects to stem the earnings decline after consolidating its 40 printing plants in 30 states into seven regional facilities - reducing its current work force of 7,000 by about 2,500.
He said his goal is to "return Harland to double-digit revenue and earnings growth by 1997."
