NEW YORK (AP) -- Shares of Pall Corp. declined Friday after the filtration products maker reported weak third-quarter sales and cut its forecasts for the fiscal year.
THE SPARK: Pall made its quarterly report after the markets closed on Thursday. The company said its adjusted net income from continuing operations totaled 74 cents per share, and revenue fell 3 percent to $641.2 million. While Pall's life science revenue improved, it reported less revenue from its industrial business, citing weaker demand from data-storage customers.
Analysts expected income of 73 cents per share and $663.5 million in revenue, according to FactSet.
THE BIG PICTURE: For the fiscal year, which ends in July, Pall now expects net income of $2.95 to $3.05 per share, down from a previous $2.95 to $3.15 per share. It also expects lower sales. Analysts were predicting profit of $3.07 per share on average.
The Port Washington, N.Y., company said it is gaining new customers and market share in Europe despite difficult economic conditions there, but said business in China has gotten tougher.
"The macro-environment continues to be a mixed one. While there is select strength around the globe, including here in the U.S., not all markets and geographies are working well," said President and CEO Lawrence Kingsley.
THE ANALYSIS: Wedbush analyst David Rose said the industrial and life science businesses both brought in less revenue than expected. He maintained a "Neutral" rating on Pall shares with a price target of $60.
SHARE ACTION: Shares of Pall lost $2.83, or 3.9 percent, to $69.02 in afternoon trading. Based on Thursday's closing price, the shares had climbed 19 percent in 2013, and they reached an all-time high of $73.19 on May 22.