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California and the West | EARNINGS ROUNDUP

Quiksilver Earnings Tumble on Higher Costs

September 08, 2006|From the Associated Press

Surf and ski clothing and equipment company Quiksilver Corp. said its fiscal third-quarter profit fell on higher interest costs and other expenses but matched Wall Street's expectations.

However, the Huntington Beach company's shares tumbled in after-hours trading after Quicksilver trimmed its profit forecast.

Quarterly profit fell to $5.3 million, or 4 cents a share, from $24.6 million, or 20 cents, a year earlier. Revenue grew to $525.9 million from $373.8 million.

Wall Street had been expecting a profit of 4 cents a share on revenue of $486.7 million, according to an analyst poll by Thomson Financial.

During the quarter, Quiksilver saw its interest expense more than double to $11.9 million from $5.5 million a year earlier. Its selling, general and administrative costs grew to $228.8 million from $133.6 million.

Looking ahead, Quiksilver said softness in the golf market meant it expected fiscal fourth-quarter profit to be 51 cents a share on revenue of $745 million to $750 million. It previously forecast earnings of 54 to 55 cents.

Analysts had been expecting 54 cents a share on revenue of $713 million.

For fiscal 2007, the company set its full-year profit guidance at 88 cents to 92 cents a share on revenue of about $2.5 billion.

Quiksilver shares fell $1.39, or 10%, to $12.25 in after-hours trading after closing up 4 cents at $13.64.

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