IHOP Shares Climb 10% as Profit Triples
IHOP Corp. said Thursday that its second-quarter profit almost tripled as a result of lower costs. Shares of the restaurant chain surged after it beat analysts’ estimates.
Net income rose to $11.9 million, or 60 cents a share, from $4.37 million, or 21 cents, a year earlier, Glendale-based IHOP said. Revenue fell 3.8% to $82.9 million.
IHOP, led by Chief Executive Julia Stewart, reduced general and administrative expenses 11% to $12.6 million in the quarter. Sales at restaurants open at least 18 months rose 0.9%.
IHOP was expected to earn 51 cents, the average estimate of seven analysts surveyed by Thomson Financial. The company reiterated its forecast for earnings this year of $2.02 to $2.12 a share.
The chain had a pretax expense of $8.9 million in the year-earlier quarter related to the closing and refranchising of some of its company-owned restaurants. IHOP opened 13 restaurants in the second quarter.
Shares of IHOP rose $3.86, or 10%, to $43.70.
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Also
* California Pizza Kitchen Inc. reported a 15% increase in second-quarter profit and raised its earnings outlook for the year on improved sales and a gain for unredeemed gift certificates. The Westchester-based chain said net income rose to $6.2 million, or 32 cents a share, from $5.4 million, or 28 cents, a year ago. Revenue jumped 16.5% to $119.4 million.
* Los Angeles jeans maker Guess Inc. said second-quarter net income rose to $4.16 million, or 9 cents a share, from $2.13 million, or 5 cents, a year earlier. Sales increased 16% to $178.2 million.
* Athletic footwear maker K-Swiss Inc. reported second-quarter net income of $16.8 million, or 47 cents a share, up 27% from $13.2 million, or 35 cents, a year earlier. The Westlake Village company said revenue rose 17% to $126.5 million.
* Ingram Micro Inc. of Santa Ana said second-quarter net income rose 61% to $41.7 million, or 26 cents a share, from $25.9 million, or 16 cents, a year earlier. Revenue rose 20% to $6.84 billion.
* Chip maker International Rectifier Corp. of El Segundo reported fiscal fourth-quarter net income of $24.7 million, or 35 cents a share, down 16% from $29.4 million, or 42 cents, a year earlier. The maker of semiconductors said sales fell 5.6% to $281.8 million.
* Antivirus software maker Symantec Corp. said profit for its fiscal first quarter rose 69%, but its shares fell because the Cupertino, Calif.-based company missed analysts’ sales estimates. Net income rose to $198.6 million, or 27 cents a share, from $117.3 million, or 16 cents, in the year-ago period. Sales rose 26% to $699.9 million.
* Activision Inc. posted a first-quarter loss of $3.59 million after costs rose faster than sales. The net loss of 2 cents a share contrasted with net income of $12 million, or 6 cents, a year earlier, the Santa Monica-based video game maker said. Sales rose 14% to $241.1 million.
* Western Digital Corp., a supplier of disk drives for personal computers, said profit for its fiscal fourth quarter rose 39% as sales to PC and consumer-electronics makers increased. The company, based in Lake Forest, said net income increased to $41.2 million, or 19 cents a share, from $29.6 million, or 14 cents, a year earlier. Revenue rose 26% to $940.4 million.
* Irvine-based home builder Standard Pacific Corp. said second-quarter profit surged 79%, to $107.6 million, or $3.08 a share, compared with $60 million, or $1.72, a year earlier. Revenue rose 24% to $952.3 million. The firm raised its yearly earnings forecast to $12 a share from $11.20.
