WASHINGTON (dpa-AFX) - Audio and infotainment group Harman International Industries, Inc. (HAR) reported Friday a profit for the fourth quarter that surged from last year, reflecting improved margins and revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.
The company also lowered its earnings and revenue guidance for the full-year 2013, citing the translation impact of the weaker euro, but doubled its quarterly cash dividend.
'We had a terrific year! Our full year and fourth quarter results reflect double digit top- and bottom-line growth which helped us deliver a 41% increase in earnings per share,' Chairman, President and CEO Dinesh Paliwal said in a statement.
The Stamford, Connecticut-based company reported net income of $49.26 million or $0.69 per share for the fourth quarter, sharply higher than $18.88 million or $0.26 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter doubled to $48.19 million or $0.67 for per share from $24.13 million or $0.34 per share in the year-ago quarter.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.65 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 6 percent to $1.09 billion from $1.03 billion in the same quarter last year, and topped three Wall Street analysts' consensus estimate of $1.08 billion. Excluding foreign currency translation, net sales increased 14 percent.
Infotainment sales declined 4 percent to $588 million, while lifestyle sales rose 31 percent to $330 million, and professional sales grew 3 percent to $172 million from last year.
Operating margin for the quarter improved 400 basis points to 6.5 percent from last year as gross margin expanded 360 basis points to 27.4 percent from a year ago.
For fiscal 2012, the company reported net income of $329.54 million or $4.57 per share, sharply higher than $135.92 million or $1.90 per share last year, and adjusted net income grew 41 percent to $2.93 per share from last year's $2.80 per share. Net sales grew 16 percent to $4.36 billion from a year ago.
Street was looking for full-year 2012 earnings of $2.91 per share on revenues of $4.36 billion.
Separately, the company reaffirmed its prior guidance for fiscal 2013 on a constant currency basis, but lowered it due to the translation impact of the weaker euro.
For fiscal 2013, the company lowered its earnings guidance to a range of $3.67 to $3.92 per share from the prior expectation of $3.75 to $4.00 per share, and cut its revenue outlook to between $4.3 billion and $4.6 billion from the previous forecast between $4.55 billion and $4.8 billion. Analysts are currently looking for earnings of $3.78 per share for the year, on revenues of $4.68 billion.
In another release, Harman doubled its quarterly cash dividend to $0.15 per share, payable on September 4, to each stockholder of record as of the close of business on August 20, 2012.
In Friday's regular trading session, HAR is currently trading at $43.81, up $1.30 or 3.05% on a volume of 0.61 million shares.
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