Feb 9 (Reuters) - Shares of Harman International Industries Inc rose as much as 18 percent to a new year-high on Tuesday, a day after the audio products company posted second-quarter results that blew past Wall Street expectations.
For the quarter, the company, whose brands include Harman Kardon, JBL, Mark Levinson and Infinity, posted earnings of 40 cents a share, excluding items. Revenue rose 24 percent to $937.5 million.
Analysts on average were expecting the company to earn 7 cents a share, before special items, on revenue of $811.2 million, according to Thomson Reuters I/B/E/S.
J.P. Morgan Securities raised its price target on shares of the company to $53 from $47, while maintaining its 'overweight' rating.
'The auto sector has many deep restructuring stories, but few of them are at companies with clean balance sheets and growthy top lines, making this under-followed stock particularly attractive for both medium-term growth and value investors,' analyst Himanshu Patel wrote in a note to clients.
Harman's cost cutting efforts have had a greater impact on the company's profitability than previously expected, RBC Capital Markets analyst Scot Ciccarelli wrote in a note.
Harman had cut more than 1,000 jobs in February 2009 and announced hiring freeze and unpaid shutdowns in various factories.
He raised his price target on the stock to $45 from $42, while maintaining his 'outperform' rating.
Shares of the company were up $5.45 at $40.95 in morning trade on the New York Stock Exchange. They touched a new-year high of $42.06 earlier in the session.
(Reporting by Fareha Khan in Bangalore; Editing by Maju Samuel) Keywords: HARMANINTERNATIONALINDUSTRIES/ SHARES (fareha.khan@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800 Reuters Messaging: fareha.khan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
For the quarter, the company, whose brands include Harman Kardon, JBL, Mark Levinson and Infinity, posted earnings of 40 cents a share, excluding items. Revenue rose 24 percent to $937.5 million.
Analysts on average were expecting the company to earn 7 cents a share, before special items, on revenue of $811.2 million, according to Thomson Reuters I/B/E/S.
J.P. Morgan Securities raised its price target on shares of the company to $53 from $47, while maintaining its 'overweight' rating.
'The auto sector has many deep restructuring stories, but few of them are at companies with clean balance sheets and growthy top lines, making this under-followed stock particularly attractive for both medium-term growth and value investors,' analyst Himanshu Patel wrote in a note to clients.
Harman's cost cutting efforts have had a greater impact on the company's profitability than previously expected, RBC Capital Markets analyst Scot Ciccarelli wrote in a note.
Harman had cut more than 1,000 jobs in February 2009 and announced hiring freeze and unpaid shutdowns in various factories.
He raised his price target on the stock to $45 from $42, while maintaining his 'outperform' rating.
Shares of the company were up $5.45 at $40.95 in morning trade on the New York Stock Exchange. They touched a new-year high of $42.06 earlier in the session.
(Reporting by Fareha Khan in Bangalore; Editing by Maju Samuel) Keywords: HARMANINTERNATIONALINDUSTRIES/ SHARES (fareha.khan@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800 Reuters Messaging: fareha.khan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
