Costa Mesa-based Ceradyne Inc. said Wednesday it expected to beat first-quarter earnings estimates, sending its shares higher.
Ceradyne, a maker of ceramic body armor that’s become essential military gear, expects to report $23.6 million to $24.2 million in income during the first quarter. Wall Street was looking for income of $19.6 million.
The updated income guidance is triple Ceradyne’s income a year ago.
Revenue in the first quarter is expected to be $134 million to $136 million, up from a prior forecast of $132 million. A year ago, the company posted sales of about $70 million in the first quarter.
Ceradyne is set to report its first-quarter results on April 27.
“We continue to believe that the lightweight ceramic body armor business will remain firm through 2007 and into 2008,” said Ceradyne Chief Executive Joel Moskowitz, in a statement.
The company reported higher-than-expected earnings in the fourth quarter.
Shares of Ceradyne closed up nearly 10% to $51.88.
Ceradyne still is off its 52-week high of more than $60 set in early March. The stock slid on concerns that demand for body armor was falling.
