Costa Mesa-based body armor maker Ceradyne Inc. beat its first quarter earnings forecasts, but said flat revenue and higher costs lead to a 14% profit decline from a year ago.
Investors were reassured as the company confirmed its outlook for the year and said a deal in the works would put it in line with its higher range of guidance.
The maker of specially designed ceramics used to protect troops in Iraq and Afghanistan expects to earn $124 million to $138 million in 2008.
Wall Street is looking for a profit of $126 million for the year.
First quarter earnings came in at $32.9 million compared to $38.1 million for the same period last year.
Wall Street was expecting a profit of $30.9 million.
First-quarter revenue of $188.5 million was ahead of analysts’ expectations of $184 million, but was flat compared to a year ago.
Higher costs to sell its products, which also include material for solar panels and orthodontics, as well as general administration expenses, hindered business, the company said.
It also said a small rise in interest expenses cut into its bottom line.
Orders for its specially designed ceramics were up 20% in the first quarter.
Its stock was up more than 2% at the close of New York trading Friday, giving it a market value of about $1 billion.
