Guitar Center Sees Its Net Income Surge 98%
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Guitar Center Inc. reported a 98% increase in net income for the second quarter Wednesday and raised its third-quarter earnings forecast.
Net income for the Westlake Village-based music instrument retailer was $12.1 million, or 47 cents a share, compared with $6.2 million, or 25 cents, in the same period a year ago.
Analysts were expecting 36 cents, according to Thomson First Call.
Net sales increased 17% to $339.6 million, while Guitar Center’s sales at stores open at least a year -- a key indicator of a retailer’s health -- rose 8%.
The company released earnings after the market closed. Guitar Center’s stock climbed 91 cents to $42.09, then surged as much as $2.41 a share in after-hours trading.
Chief Financial Officer Bruce Ross attributed the strong results in part to reduced freight expenses and improved marketing.
Guitar Center increased its third-quarter profit forecast to 42 cents a share from 39 cents.
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