Herley Industries up on buyback news, improved Q4 profit
Herley Industries, Inc. (Nasdaq: HRLY) shares are up after the defense and aerospace products supplier announced before the opening that its board of directors approved a share buyback of one million shares.
“The board of directors believes that the common stock of the company is undervalued, and has authorized the repurchase plan for up to one million shares of the company's stock,” CEO Myron Levy said in a statement.
After Thursday’s close, the Lancaster, Penn.-based company reported that its fourth-quarter profit rose to $3.8 million, or $0.28 per share, above analyst estimates of $0.27 per share and from $0.71 million, or $0.05 per share, a year earlier. Herley announced that sales during the fourth quarter fell to $40.6 million, below Wall Street views of $44 million and down from $42.8 million during the comparable period of 2006.
The company’s higher profit was fueled by lower selling costs of $29.3 million, compared with $33 million a year earlier.
“While we are not satisfied with the results for the fourth quarter and fiscal year, it is important to note that despite the effects of the suspensions and the costs associated with implementation of the Administrative Agreement, the company was able to report a profit for its fourth quarter and its fiscal year,” Myron Levy said in a statement.
In morning trading, HRLY shares are up1.93%, or $0.30, at $15.27. Over the last 52 weeks, shares have ranged from $12.28 to $18.38.
About the Author
Reporter Will Atkinson is based in SmallCapInvestor.com's Washington, D.C. bureau.
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