Shares of battery maker, Exide Technologies (Nasdaq: XIDE) soared as much as 32 percent on Thursday, after the company announced fourth quarter earnings that beat analysts’ expectations.
For the fourth-quarter ended March 31, Exide reported net income of $40.4 million, or 53 cents a share, compared with a net loss of $64.4 million, or 85 cents a share a year earlier. Analysts were expecting Q4 earnings of 4 cents per share.
Net sales for the fiscal 2010 fourth quarter of $714.7 million compared to $654.3 million in the prior year quarter on 8.4 percent lower volumes.
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For the fiscal year ended March 31, net sales decreased 19.2% from fiscal year 2009 on 18% lower volumes. The company also dramatically cut its full-year net loss to $11.8 million or ($0.16) per share compared to a net loss of $69.5 million or ($0.92)
“While the global markets are far from stable, we are encouraged by what we are seeing as we look ahead to Fiscal 2011,” said Exide’s CEO, Gordan Ulsh in a statement. “Within both our Transportation and Industrial Energy segments, the market indicators continue to point to a firming of demand in all channels.”
The strong fourth quarter report came on the heels of the resignation of Exide’s president and chief operating officer, Edward O’Leary, who will step down on June 16th.
Earlier this year, J.P. Morgan’s senior biotech analyst, Geoff Meacham gave his macro view of the biotech industry. “M&A activity for small and mid-cap biotech may pick up, driven by Pharma but also driven by large cap biotechs,” he said. “In this report, we’ve stressed pipelines and sustainability of growth, but as growth in the large cap group matures, increased cash flow generation may fuel increased M&A activity.”
thanks in large part to an 85 percent increase in revenue from the company’s mineral exploration division.