(By Balaseshan) Harman International Industries Inc. (NYSE:HAR), a maker of audio systems, reported a 161% jump in quarterly earnings on double digit top-line growth. Results exceeded Street's expectations. However, the company cut its fiscal 2013 guidance on translation impact of the weaker euro.
Adjusted earnings rose to $48 million or $0.67 per share from $24 million or $0.34 per share in the previous year quarter.
Sales increased 6% to $1.091 billion. In local currency, net sales rose by 14%.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.65 per share on revenue of $1.08 billion for the fourth quarter.
Sales from Infotainment Division were $588 million, a decrease of 4%, or an increase of 5% in local currency. Lifestyle division sales were $330 million, an increase of 31%, or 39% in local currency. Sales from Professional division were $172 million, an increase of 3%, or 6% in local currency.
Gross margin on a GAAP basis increased to 27.4% from 23.8%, primarily due to better leverage of fixed costs on higher sales and productivity improvements in the cost base.
Looking ahead into the fiscal 2013, the company lowered its earnings guidance to range of $3.67 to $3.92 per share from previous forecast of $3.75 to $4.00 per share. Harman cut its revenue outlook to range of $4.3 billion to $4.6 billion from previous estimate of $4.55 billion to $4.8 billion. Street analysts predict profit of $3.78 per share on revenue of $4.68 billion.
Harman cited translation impact of the weaker euro to reduction of guidance. On a constant currency basis, the company confirmed its previous guidance.
In addition, Harman declared a cash dividend of $0.15 per share for the fourth quarter. The dividend will be paid on September 4, to each stockholder of record as of the close of business on August 20.
HAR closed Thursday's regular session at $42.51. The stock has been trading between $25.53 and $52.75 for the past 52 weeks.