Dynamic Materials shares tumble on earnings, guidance

Shares of Dynamic Materials Corp. tumbled Friday, after the industrial metalworking company said its first-quarter profit rose 7.4 percent, but issued a disappointing guidance.

Dynamic Materials shares dropped $10.21, or 21.9 percent, to close at $36.38, after falling as low as $35.60 earlier in the session.

Over the past 52 weeks, the company's shares have traded between $33.09 and $66.30.

For the quarter ended March 31, Dynamic Materials earned $5.2 million, or 42 cents per share, compared with $4.9 million, or 40 cents per share, for the same quarter in 2007.

Analysts polled by Thomson Financial expected a profit of 41 cents per share.

Sales rose 76 percent to $58.4 million from $33.1 million in the year-ago period, while analysts expected sales of $63.6 million.

The recent quarter's sales included a $15.2 million contribution from the company's recent acquisition of DYNAenergetics.

Dynamic Materials said it remains on track to achieve its previous 2008 financial target of up to 60 percent revenue growth. Based on the company's 2007 sales of $165.2 million, the guidance projects revenue of up to $264.3 million for the year.

Analysts expect 2008 revenue of $262.5 million.

The company said it also expects its second-quarter profit and sales to be flat compared with its first-quarter results, which would be below analysts' expectations of earnings of 56 cents per share on $63.6 million in sales.