UPDATE 1-Checkpoint Q1 results beat market view; shares jump
(Recasts; adds details, share movement)
May 7 (Reuters) - Checkpoint Systems Inc (CKP.N), a provider of security products to retailers, posted better-than-expected quarterly results, helped by recent acquisitions, sending its shares up about 17 percent.
For the first quarter, net income was $4.8 million, or 12 cents a share, compared with $5.0 million, or 12 cents a share, in the year-ago period.
Excluding deferred compensation expense adjustment and restructuring expense, the company earned 16 cents a share.
Analysts on average had expected earnings of 14 cents a share, before special items, for the latest first quarter, according to Reuters Estimates. Revenue rose 22 percent to $209.6 million, driven by gains from foreign currency. Analysts were expecting revenue of $200 million.
Sales from the Alpha, SIDEP and Asialco businesses, which the company acquired in the fourth quarter, accounted for about 9.2 percent of the overall sales growth, the company saidina statement.
Checkpoint said it continues to expect earnings of $1.65 to $1.75 a share from continuing operations, excluding any restructuring charges.
Revenue, at current exchange rates, is expected to increase in the low double digits. The company had reported revenue of $834.2 million in fiscal 2007.
Shares of the Thorofare, New Jersey-based company were up $3.62 at $27.28 in late morning trade on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Gopakumar Warrier)
