Costa Mesa-based Ceradyne Inc. fell short of Wall Street expectations with third-quarter results but affirmed its outlook for the rest of the year and upped its guidance for 2011.
The maker of ceramics for bulletproof vests and industrial uses reported a profit of $4.5 million, down 8% from a year earlier and below the $5.5 million expect on average by analysts.
Revenue came in at $91.8 million, down 15% and short of the $98.3 million expected by Wall Street.
Ceradyne continues to see a decline in military orders, which made up about 20% of third-quarter sales. Meanwhile, other parts of the company’s business are starting to pick up, according to Chief Executive Joel Moskowitz.
The company also makes ceramics for the solar and nuclear power industries, diesel engines, industrial machinery and other uses.
Rising sales of ceramics for industrial uses led Ceradyne to affirm its guidance for the rest of the year and up its outlook for 2011.
For all of 2010, the company expects a profit of $20 million to $29.5 million, which would be up about 30% from a year earlier.
Analysts on average expect the company to see 2010 profits of $23.5 million.
Ceradyne sees sales for the year coming in at $400 million to $430 million, which would be up about 4% from a year earlier.
Wall Street is looking for sales of $413 million.
Next year, Ceradyne said it sees profits coming in at $34 million to $43.8 million.
Analysts had been expecting a 2011 profit of $32.3 million.
The company sees revenue next year of $445 million to $515 million, compared to the $434 million Wall Street has been expecting.
Investors looked past the weak third-quarter results and seized on Ceradyne’s outlook, with the company’s shares closing up about 1% to a market value of $615 million.
