Gardner Denver shares climb on 3Q earnings report

Gardner Denver shares climb on 3rd-quarter earnings report; analyst points to restructuring

• On 2:49 pm EDT, Friday October 23, 2009

PITTSBURGH (AP) -- Shares of Gardner Denver Inc. shot up Friday, a day after the maker of pumps and compressors reported third-quarter earnings that easily beat some analysts' expectations.

The company said late Thursday its quarterly net income fell 44 percent to $19.4 million during the three months ended Sept. 30 from $34.6 million in the year-earlier period. Revenue slid 11 percent to $428.8 million from $480.3 million.

Excluding one-time charges, Gardner Denver earned 61 cents per share -- well above a Wall Street estimate of 43 cents per share, according to Robert W. Baird & Co. analyst Michael Schneider, who had predicted 41 cents per share.

"Gardner's performance was impressive and illuminates the success of its restructuring initiatives," he wrote in a note to investors. "We recommend buying the stock with an upward bias to our estimates and price target."

Schneider has a price target of $42 and an "Outperform" rating on Gardner Denver's stock.

Besides reporting quarterly results, the company forecast fourth-quarter earnings of 68 cents to 72 cents per share, excluding special charges. Analysts surveyed by Thomson Reuters, who typically exclude one-time items, expect 70 cents per share.

That forecast "seems low especially since the compressors division nearly reached its year-end target," Schneider wrote.

Shares of Gardner Denver rose $2, or 5.3 percent, to $39.83 in afternoon trading.

Buzz up!