(Analyst commentary and updated stock price added.)
HUNTINGTON BEACH, Calif. (
wiped out hard in the third-quarter, as the surf-inspired apparel maker more than halved its profit and forecast a loss in the fourth quarter.
The news sent shares plunging 18% to $2.32 in morning trading.
Quiksilver reported after the close on Thursday a profit of $1.3 million, or 1 cent a share, down significantly from the $2.9 million, or 2 cents, it earned in the year prior.
Excluding items, the company said it actually earned 3 cents a share, in-line with analysts' outlook.
The company's revenue declined 11% to $501.4 million from $564.9 million last year.
Earlier this year, management announced cost cuts, including the elimination of 360 jobs.
Quiksilver also announced that it has secured a new funding of about $150 million. This financing should allow the company to refocus on running its business, says analyst Jennifer Black of the firm baring her name.
But an improvement in sales and earnings will not be visible during the remainder of 2009, Black warns. In fact, the company may not have even reached its low point, though it's probably close.
Looking ahead, Quiksilver expects to post a fourth-quarter loss in the mid-single digit range.
-- Reported by Jeanine Poggi in New York
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