Shares of American Reprographics Co., which provides large-format document reproductions, climbed Friday after the company said its profit rose 10 percent, surpassing analyst estimates due to improved sales.
Late Thursday, the Walnut Creek, Calif., company said it earned $18.5 million, or 41 cents per share, up from $16.8 million, or 37 cents per share, a year earlier. Revenue grew 17 percent to $187.4 million from $160.2 million. Sales from its primary reprographics services business rose 19 percent to $142.5 million.
Results beat Wall Street expectations, as analysts polled by Thomson Financial expected an average of 37 cents per share on $183.4 million in revenue.
The shares gained $3.35, or 21 percent, to $19.53 in afternoon trading.
ARC maintained its profit and revenue forecasts for the year, expecting $1.52 to $1.60 per share in net income and $720 million to $760 million in sales.
Baird analyst Michael Schneider said revenue grew more than he expected, in part because management is working to increase sales to new customers. He thinks the company's full-year forecast is conservative.
Schneider kept an "Outperform" rating on the stock, with a price target of $24 per share.
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