Associated Press
International Rectifier 3Q Profit Up
Wednesday October 27, 6:53 pm ET
International Rectifier Posts Higher Third-Quarter Profit, Provides Revenue Outlook
EL SEGUNDON, Calif. (AP) -- International Rectifier Corp., which makes power management products for electronics, on Wednesday reported third-quarter results that beat Wall Street expectations as gross margins exceeded expectations and hit record levels.
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Quarterly net income was $37.6 million, or 53 cents per share, up from $16.7 million, or 25 cents per share, in the year-ago period. Excluding items, the company posted income of $42.4 million, or 59 cents per share, compared to $19.8 million, or 30 cents per share, in the year-ago period.
Revenue for the period was $312.2 million, up from $234.1 million in the year-ago period. Analysts polled by Thomson First Call expected International Rectifier to report earnings of 52 cents per share on revenue of $304 million.
"Overall, business exceeded our expectations with the most recent quarter reflecting record revenues, gross margins and backlog," said chief executive Alex Lidow in a statement.
International Rectifier said gross margin -- the difference between net sales and cost of goods sold -- hit a record higher during the September quarter. The company's gross margin was 42.7 percent, with gross margin on incremental sales also higher-than-anticipated at 79 percent as the company had a stronger mix of products.
The company said it expects the fourth quarter to produce revenue within a five percent of $312 million. Analysts project earnings per share of 57 cents on revenue of $312 million.
Also, International Rectifier said it plans to complete a previously announced divestiture of about $10 million per quarter in revenue by the end of December -- part of a $100 million "annualized revenue carve-out of non-strategic, commodity businesses."
Shares of the company rose $1.95, or 5.31 percent, to close at $38.66 on the New York Stock Exchange. In after-hours trade, the company moved up another $1.59, or 4.1 percent, to $40.25. |
