Zep, the maker of cleaning and maintenance chemicals such as ArmorAll glass and car cleaners, said early Thursday that net income surged 92.7% to $4.1 million, or 18 cents a share, from $2.1 million, or 9 cents, in the year-earlier period.
Adjusted for restructuring charges, Zep's profit came in at $5.3 million, or 24 cents a share, missing analysts' consensus for earnings of 37 cents.
Zep said higher costs pressured margins in the quarter.Investors were clearly disappointed, bidding Zep shares 9% lower in premarket trading Thursday. The stock closed lower at $17.58 on Wednesday, and remains around 11.6% lower for the year. Revenue rose 7.7% in the fourth quarter to $173.8 million, but the top-line figure also missed expectations. Analysts had called for Zep to book fourth-quarter sales of $175.6 million. Zep was spun off from lighting maker Acuity Brands (AYI) in 2007.
-- Written by Miriam Marcus Reimer in New York.
>To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to @miriamsmarket.
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