Cubic Corp. says profit fell in fiscal 1Q
Cubic Corp., whose electronics are used in defense systems and for collecting fares on mass transit, said Monday that sales increased slightly but costs rose faster and profit fell in the fiscal first quarter.
The company said its operating income fell $2 million because of a contract dispute. Cubic said it was pursuing recovery of the disputed amount but couldn't determine the likelihood of getting the money. It did not describe the disputed contract.
The company released the results, which fell short of analysts' expectations, shortly before the market closed. Its shares fell $3.04, or 8 percent, to $34.76 in late-afternoon trading.
Cubic said it earned $13.7 million, or 51 cents per share, in the quarter ended Dec. 31, compared with $14.2 million, or 53 cents per share, a year earlier.
Analysts expected profit of 57 cents per share, according to a survey by Thomson Reuters.
Revenue rose to $250.7 million from $244.9 million a year ago, and short of analysts' prediction of $263.7 million.
The company said sales in its transportation business were nearly flat, but defense sales rose 15 percent.
Overhead and cost of services both rose from a year ago.