Why Harman International Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Harman International Industries were getting pumped up today, closing 13% higher after posting a strong first-quarter earnings report.
So what: The diversified electronics maker delivered per-share earnings of $0.95, ahead of estimates of $0.84, while revenues jumped 17%, to $1.17 billion, topping expectations of $1.1 billion. The sales gain was driven by increases in the Infotainment division, which encompasses the company's automotive audio products, and all three of the company's divisions showed double-digit sales increases. The maker of JBL and other speaker brands also began a new restructuring program in Germany that's expected to save the company $25 million annually by 2015 as it makes strides on both ends of the income statement.
Now what: Harman has been a big winner of late as shares have doubled since April, and are up over 700% after bottoming out following the financial crisis. The company seems to be firing on all cylinders as it recently secured $1.3 billion in contracts with various automakers, and figures to keep building profits as the auto market comes back at home and in Europe. Given those factors, and a reasonable P/E of 25, it's hard to see why shares wouldn't continue to move higher.
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The article Why Harman International Shares Jumped originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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