Harman 3rd-qtr profit, revenue rise; shares spike
Speaker and home theater system maker Harman International Industries Inc. said Monday that its fiscal third-quarter profit more than quadrupled, thanks to a large tax-related gain and higher revenue.
The results surpassed Wall Street's expectations and the company's shares soared to their highest point in more than a year.
Harman earned $172.7 million, or $2.38 per share, for the three months that ended on March 31. That's up from $36.6 million, or 51 cents per share, in the same period a year earlier.
Adjusted earnings were 74 cents per share in the latest quarter. This figure excludes restructuring charges and tax-related gains.
Revenue rose 16 percent to $1.1 billion from $948 million in the 2011 third quarter.
Analysts, on average, were expecting adjusted earnings of 67 cents per share on revenue of $1.04 billion, according to data provider FactSet.
"The luxury car segment we serve has been highly resilient and has outpaced the overall automotive market, and we continue to gain market share," said Dinesh C. Paliwal, chairman, president and CEO, in a statement.
He added that Harman received its largest contract ever — worth more than $2 billion — from a "leading automaker" it did not name. Demand from India and China is also helping with growth.
Shares of the Stamford, Conn.-based company rose $4.14, or 8.8 percent, to $51.40 in late morning trading. Earlier, the stock hit $52.75, a point last seen in February 2011.