Harman reverses 1st-qtr loss with expansion
High-end speaker and headphone maker Harman International Industries Inc. said Tuesday that its first-quarter revenue rose and it reversed a year-ago loss, prompting its shares to soar.
The company, based in Stamford, Conn., reported net income of $27 million, or 39 cents per share. That's compared with a loss of $10 million, or 17 cents per share, a year earlier.
Analysts surveyed by Thomson Reuters on average were expecting Harman to report a gain of 27 cents per share, excluding one-time items.
The company's shares surged $4.22, or 12.6 percent, to $37.70 during afternoon trading on the news that the company had performed better than expected.
Its sales rose to $837 million from $748 million, a fourth consecutive quarter of growth from a year earlier and a jump Harman attributes in part to its expansion into emerging markets.
Harman said it plans to do more business in China and has invested $100 million in two factories to meet demand there for consumer, automotive and professional-grade audio products. The factories are expected to start production next summer.