Shares of Huntington Beach-based Quiksilver Inc. rose Friday, a day after the recovering clothing maker easily beat Wall Street expectations with results for its recently ended quarter.
The company’s stock closed up about 2% on a sharply lower day on Wall Street.
Quiksilver has a market value of about $620 million.
After the market’s close on Thursday, Quiksilver reported an adjusted profit of $15.7 million for the three months through April, more than double its profit from a year earlier.
Wall Street analysts were expecting a solid quarter from Quiksilver, which has reworked debt and cut expenses in the past year or so.
Even so, the company’s profit easily surpassed the $4.2 million in profit analysts had expected on average.
The maker of clothes inspired by surfing, skateboarding and snowboarding saw revenue of $468.3 million, down 5% from a year earlier but easily topping the $455 million expected by Wall Street.
“We’re very pleased to again deliver financial results that exceeded our prior expectations,” Chief Executive Bob McKnight said.
But the company offered a tempered outlook for the current three months through July, something investors were unfazed by.
Quiksilver forecast a profit in the in the “low-single-digit” range on a per share basis. At 3 cents per share, that would be a profit of $4.3 million.
Analysts have been expecting a profit of $7.1 million, or 5 cents a share.
Quiksilver forecast revenue to be “down in the low teens on a percentage basis” from a year earlier, when the company saw $501 million in revenue.
Analysts had been looking for a yearly sales decline of about 3%.
The company’s “profitability has bounced back, but its revenue outlook remains challenging,” said Mitch Kummetz of Milwaukee-based investment bank Robert W. Baird & Co.
