LoJack profit up, revenue off target
LoJack Corp., which makes vehicle tracking devices, said today that third-quarter earnings jumped 26 percent, beating Wall Street's profit forecast but not its revenue prediction due to weakness in the California car market.
LoJack shares surged $1.32, or 8.1 percent, to $17.59 in afternoon trading. The stock has traded between $14.75 and $24.24 during the past 52 weeks.
Third-quarter earnings grew to $6.5 million, or 34 cents per share, from $5.2 million, or 28 cents per share, in the prior year. Adjusted to exclude a 4 cent per share gain related to a lawsuit, LoJack earned 30 cents per share in the most recent quarter. Analysts surveyed by Thomson Financial forecast third-quarter earnings of 27 cents per share. Such forecasts typically exclude one-time gains.
Quarterly revenues rose 2 percent to $55.7 million, from $54.9 million in the third quarter of 2006. Analysts forecast revenue of $58.4 million.
Gross margin as a percentage of revenue rose to 57 percent, from 54 percent in the third quarter of 2006. Chairman and Chief Executive Richard T. Riley attributed the improvement to increased royalty revenue, as well as efforts to reduce manufacturing and installation costs.
He said revenue and unit growth fell short of expectations, due to an ongoing decline in car sales in California, the company's largest single market, which he attributed to the state's weak economic condition.
Riley noted that the company's international licensee and motorcycle businesses continued to book unit and revenue growth during the quarter. (AP)
