Imation Beats Estimate

Sales rise 9%.
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Imation

(IMN)

swung to a better-than-expected fourth-quarter profit on a 9% rise in revenue.

The company earned $18.4 million, or 52 cents a share, in the quarter, including a net gain of 2 cents a share from a lower tax rate and a restructuring charge. The company lost $7.9 million, or 23 cents a share, last year. The year-ago quarter included a loss from discontinued operations of 29 cents a share. Revenue was $343 million in the 2005 quarter compared with $315.8 million a year ago.

Analysts expected earnings of 48 cents a share on sales of $317.2 million in the latest quarter.

For 2006, Imation expects earnings from continuing operations of $1.70 to $1.80 a share, including a stock-options expense of 18 cents to 22 cents a share. Analysts were forecasting earnings of $2.09 a share.

Imation, a Minnesota-based data storage company, also announced Thursday its acquisition of Memorex, a manufacturer of magnetic tape for data storage.

The stock is up $4.39, or 9.6%, to $49.99 in premarket trading Friday.

This story was created through a joint venture between TheStreet.com and IRIS.