Harman Jumps After Boosting 2013 Profit Forecast: New York MoverMark Clothier
Harman International Industries Inc. rose the most in nine months after the maker of car infotainment systems increased its full-year profit forecast as quarterly earnings beat analysts’ estimates.
The shares gained 8.2 percent to $47.83 at the close in New York for the biggest daily increase since July 27. They have advanced 7.1 percent this year, as the Standard & Poor’s 500 Index climbed 12 percent.
Harman, based in Stamford, Connecticut, revised the earnings outlook for its fiscal year that ends in June to $3 a share, after forecasting $2.70 to $2.90 in January. The average of eight analyst estimates compiled by Bloomberg was $2.80.
“Markets are tough in Europe but in spite of that environment, sequentially I’m quite pleased with the performance,” Chief Executive Officer Dinesh Paliwal said in an interview today. “Given the environment we are in, I think the company is performing reasonably well.”
Revenue in the fiscal third quarter ended March 31 fell 3.1 percent to $1.06 billion as European auto production declined amid a 9.7 percent drop in vehicle sales. Excluding costs such as restructuring, profit was 79 cents a share, beating the 61-cent average of eight analyst estimates compiled by Bloomberg.
“Harman reported better-than-expected results, driven by in-line revenue but sharply rebounding margins,” Ryan Brinkman, an analyst at JPMorgan Chase & Co. in New York, said in an e-mail. He rates the shares overweight.
Quarterly net income fell 80 percent to $35 million, or 50 cents a share, from $173 million, or $2.38, a year earlier, the company said in a statement. The 2012 quarter included a gain of $1.71 a share related to a deferred tax allowance.
Harman supplies equipment that combines music, maps and other information in automobiles. The company got 59 percent of its revenue from Europe in the fiscal year that ended June 30, according to its annual U.S. regulatory filing. The U.S. accounted for 22 percent, according to the filing.
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