Quiksilver Shares Fall 12% Despite Gain in Earnings

Quiksilver Inc.’s second-quarter results matched analysts’ expectations this week, but investors apparently were still disappointed.

Quiksilver shares fell 12% Thursday, a day after posting the quarterly earnings. The stock fell $4.75 a share to close at $34 in heavy trading on the Nasdaq market.

Analyst David Rose of Jeffries & Co. also downgraded the stock from “buy” to “accumulate” today, citing higher-than-expected marketing costs in the third and fourth quarters.

Although the company has said it expects long-term sales growth of 15% to 20%, “investors have built in expectations much higher than this based on the company’s ability to outperform analysts’ estimates over the past year,” Rose wrote in a research report.

Quiksilver said Wednesday it earned $4.4 million in the second quarter, up from $3.6 million a year ago, on a 15% gain in revenue.