Surfwear merchant Quiksilver ( ZQK) upped its third-quarter earnings forecast, citing increased revenue from its diversified product lines and stringent cost-cutting measures. The Huntington Beach, Calif.-based retailer said it now sees a net profit of 32 cents to 33 cents a share, which would be relatively flat with year-ago levels. Analysts, on average, were expecting the company to earn 29 cents a share, according to a poll conducted by First Call/Thomson Financial. Revenue for the quarter is expected to come in between $170 million and $173 million, ahead of the consensus estimate of $167.8 million. Quiksilver also said it remains on pace to earn at least $1.42 a share on revenue of $685 million to $690 million, compared with $1.17 a share on $615.5 million last year. Analysts are projecting a year-end profit of $1.40 a share. The company's shares were up 3.2% to $21.36 in early trading on the New York Stock Exchange .