Zions offers 4Q outlook, hurt by charges |
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Thu, 11 Jan 2007 16:15
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NEW YORK (AFX) - Zions Bancorporation, an operator of banks in nine states in the West, on Thursday offered guidance below expectations, hurt by an equipment lease charge.Zions said it expected earnings for the fourth quarter ended Dec. 31 between $1.31 and $1.33 per share, while analysts polled by Thomson Financial expect $1.44 per share.Zions said earnings will be hurt by a loss on an equipment lease related to an alleged accounting fraud at a water bottling company. Zions' National Bank of Arizona had a $17.1 million participation in the lease, and Zions expects to record a loss of about $10.9 million, or 6 cents per share, during the quarter because of the lease.Zions also expects a 4-cent per share pre-tax expense in the quarter related to the call premium on the early redemption of $176.3 million of 8.536 percent trust preferred stock.Finally, Zions offered a dividend of $3.8 million in December, to be paid on March 15, which reduced earnings by 4 cents per share.Shares dropped 35 cents to $83.80 during morning trading on the Nasdaq Stock Market.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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