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UPDATE 1-Raven Industries Q3 EPS beats Street

Thu Nov 19, 2009 11:08am EST

Stocks

   

* Q3 EPS $0.40 vs est $0.36

* Revenue falls 20 pct to $60.2 mln

* Cautious about near-term outlook for farm equipment

* Shares fall 4 pct

Nov 19 (Reuters) - Industrial manufacturer Raven Industries Inc (RAVN.O) posted a better-than-expected quarterly profit, helped by strength in its Aerostar segment, but said it remained cautious about the near term outlook for farm equipment.

For the third quarter, the company reported net income of $7.3 million, or 40 cents a share, compared with $8.4 million, or 46 cents a share, a year ago.

Revenue for the quarter fell 20 percent to $60.2 million.

Analysts on average were expecting the company to earn 36 cents a share, before special items, on revenue of $61.8 million, according to Thomson Reuters I/B/E/S.

Sales at Aerostar, which sells aerospace products and military products, among others, rose 9 percent to $5.9 million, helped by an increase in sales of U.S. Army parachutes.

However, sales at the company's engineered films and applied technology segment fell 30 percent and 19 percent, respectively.

Regarding the electronic systems segment, Chief Executive Ronald Moquist said the company was cautious over the near term due to the impact of the recession on the airline industry.

Shares of the Sioux Falls, South Dakota-based company were trading down 4 percent at $26.09 Thursday late morning on Nasdaq. (Reporting by Fareha Khan in Bangalore; Editing by Anne Pallivathuckal)



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