Cooper Industries plc (CBE) Tuesday reported a higher profit for the fourth quarter driven by demand for its electrical products that helped sales improve 9 percent from last year. The Ireland-based company's earnings for the quarter topped Street estimates, as did sales.
Cooper also guided its first quarter and full year 2012 earnings, both of which are indicated to top Street expectations. Cooper shares are up 4.5 percent in afternoon trade on the New York Stock Exchange, following the news.
The company's fourth-quarter net income grew to $160 million or $1.00 per share from $142 million or $0.85 per share last year.
On average, 19 analysts polled by Thomson Reuters expected earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter rose 9 percent to $1.37 billion from $1.26 billion a year ago. Fifteen analysts expected revenues of $1.35 billion for the quarter.
Core revenue grew 4.7 percent from last year, with acquisitions chipping in with 4.5 percent.
By business, Energy & Safety Solutions segment revenues grew 9.7 percent to $742.4 million, and Energy & Safety Solutions rose 9.7 percent to $742.4 million year-over-year.
Operating margin for the quarter improved to 14.6 percent from 14.3 percent a year ago.
Cooper's equity income from the Apex Tool Group joint venture totaled $21.9 million and included in the quarter's operating earnings. In the prior year, equity income from the venture was $12.3 million.
For the first quarter, Cooper has forecast earnings of $0.97 to $1.01 per share on revenue growth of 4 to 6 percent. Analysts currently expect the company to earn $0.98 per share for the first quarter.
For 2012, Cooper expects earnings from continuing operations of $4.15 to $4.35 per share, assuming revenue growth of 5 to 7 percent. Analysts currently expect earnings of $4.22 per share for the year.
CBE is trading at $60.38, up $2.65 or 4.59%, on a volume of about 1 million shares on the NYSE.
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