Polypore Shares Down 7% As Q2 Results Miss Estimates

(RTTNews) - Shares of Polypore International, Inc. (PPO) were down more than seven percent in extended trading on Wednesday after the battery technology company reported results for the second quarter that missed analysts' expectations. The company also reported a profit for the quarter that declined from last year, reflecting lower gross margins.

The company noted that its microporous business is excluded from continuing operations as its divestiture is expected by year-end.

"Our Transportation and Industrial and Separations Media segments continued to deliver solid performance. In the Electronics and EDVs segment, the sales improvement we experienced in March was sustained through the second quarter, with the sequential improvement being driven by sales into EDV applications," President and CEO Robert Toth said in a statement.

The Charlotte, North Carolina-based technology filtration company reported net income of $15.4 million or $0.33 per share for the second quarter, lower than $20.5 million or $0.43 per share in the prior-year quarter.

Income from continuing operations declined to $12.5 million or $0.27 per share from $17.7 million or $0.37 per share in the year-ago quarter.

Excluding items, adjusted income from continuing operations for the quarter was $15.9 million, or $0.34 per share, compared to $21.1 million or $0.45 per share last year.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter edged up to $168.9 million from $167.6 million in the same quarter last year, but missed twelve Wall Street analysts' consensus estimate of $178.10 million.

The sales growth reflects continued solid performance at the company's separations media as well as transportation and industrial segments.

Sales of lead-acid battery separators in the quarter grew 9 percent, while lithium battery separator sales decreased from the year-ago quarter. Sales at the company's separations media segment increased 5 percent in the quarter.

Looking ahead, Toth added, "Our company is fundamentally strong and well-positioned to capitalize on market growth as it occurs. While seasonality will impact the third quarter, we expect solid performance to continue in our Transportation and Industrial and Separations Media segments."

However, Electronics and EDVs segment's sales into consumer electronics applications remain challenging in the near term.

PPO closed Wednesday's regular trading session at $45.08, down $0.92 or 2.00% on a volume of 0.92 million shares. The stock lost a further $3.28 or 7.28% in after-hours trading.