Day Runner Earnings in Line With Estimates

Day Runner Inc. said Monday that it expects fiscal third-quarter earnings to be in line with analysts’ estimates of 10 cents to 11 cents a share, even with lower sales. For last year’s third quarter, which ended March 31, the maker of organizers and planners earned $652,000, or 10 cents a share.

The company said revenue is expected to decline 7% to 12% to about $18 million to $19 million because its sales to Wal-Mart Stores Inc., its largest customer, haven’t grown as expected. Still, an improved gross margin and good expense control will help it meet analysts’ estimates, the company said.

Day Runner said that, while it doesn’t expect sales to Wal-Mart to rebound until “well into the June quarter,” sales for the fiscal fourth quarter are expected to rise 10% to 21%--to $36.5 million to $40 million--because of strong consumer demand.

The company said it expects to match analysts’ estimates for a fourth-quarter profit of 38 cents to 42 cents a share, well ahead of last year’s fourth-quarter earnings of 29 cents a share. Day Runner shares rose 31.25 cents Monday to close at $26.125 a share.