Volcom Beats Estimates, Earns $11.3 Million
From Times Staff and Wire Services
Youth apparel maker Volcom Inc. said third-quarter profit sailed past Wall Street’s expectations in its second earnings release since going public in June.
The Costa Mesa company earned $11.3 million, or 47 cents a share, compared with $10.1 million, or 52 cents, last year. The numbers are skewed by a change in tax status that resulted from Volcom’s initial public offering. In this year’s quarter, the company recorded a provision for income taxes using a 29.8% tax rate, whereas in 2004 the tax rate was 1.5%. Analysts expected per-share profit of 29 cents.
Sales jumped 38% to $51.2 million. For the year, Volcom said it now expected annual revenue growth of 39% to 41%, compared with the 34% to 37% increase it had predicted earlier.
