STAMFORD, Conn. (AP) -- Harman International Industries Inc. said Thursday that its fiscal third-quarter net income dropped 80 percent absent a large tax-related gain recorded in the same period last year. But the company's adjusted results topped Wall Street's expectations, and it raised its full-year earnings forecast.
Shares climbed to their highest level in more than two years.
The automotive electronics and audio equipment maker reported earnings of $34.9 million, or 50 cents per share, for the three months ended March 31. A year ago, it earned $172.7 million, or $2.38 per share.
The prior-year period included the release of a deferred tax asset valuation allowance that boosted earnings by $1.71 per share.
Stripping out restructuring charges and other one-time items, earnings were 79 cents per share, compared with 74 cents per share a year earlier.
Analysts, on average, forecast earnings of 61 cents per share, according to FactSet.
Revenue fell 3 percent to $1.06 billion from $1.1 billion, as automotive production in Western Europe declined due to economic weakness in the region. Still, the performance managed to top the $1.05 billion Wall Street expected.
The company's stock added $2.69, or 6.1 percent, to $46.88 in morning trading. The shares touched $50.64 earlier in the session, its highest point since 2011.
Harman said it now anticipates earnings for its fiscal year, which ends in June, of $3 per share, up from a range of $2.70 to $2.90 per share. It foresees revenue at the mid- to high-end of its prior outlook of $4.18 billion to $4.25 billion.
Analysts, on average, predict earnings of $2.80 per share on revenue of $4.21 billion.