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SPX Reverses Earlier Drop After Forecast Trails Estimates

SPX Corp., a maker of power-plant cooling systems, reversed an earlier decline after forecasting 2012 profit below analysts’ estimates and rose for a second day.

Shares of the Charlotte, North Carolina-based company gained 1.2 percent to $66.32 at the close in New York.

SPX initially slid as much as 6.6 percent after it told analysts at a meeting in New York that it may post earnings per share of $4.70 to $5.10 this year, including 30 cents from its acquisition of ClydeUnion Pumps last month. That’s lower than a forecast of $5.27 per share, according to the average of 12 analysts’ estimates compiled by Bloomberg.

The company’s drop may have attracted investors looking for a bargain stock, said Brian Langenberg, an analyst with Langenberg & Co. in Chicago.

“Even if a company throws up on itself and takes its numbers down, there’s a price at which somebody with a wallet will say, ‘I’ll buy some of this,’” Langenberg said in a telephone interview. He recommends buying the shares.

Sales at SPX’s thermal-equipment and services division are expected to decline as much as 14 percent in 2012, as demand slows for cooling systems and heat exchangers, the company said in an accompanying slide presentation. SPX, which provides equipment to charge electric cars, said sales in that line may be little changed to up 5 percent this year.

“Our 2012 guidance reflects our view of continued above average growth in emerging markets, a slow-growth U.S. economy and a cautious outlook on the economic environment in Europe,” the company said in a statement.

SPX forecast revenue of $6 billion to $6.25 billion for 2012, representing 9 percent to 14 percent growth from 2011. That compares to $6.13 billion, according to the average estimate of 9 analysts.

The company said infrastructure will probably account for 37 percent of sales in 2011, while the car-charging unit will contribute 15 percent.

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