SIOUX FALLS, S.D. (AP) — Raven Industries Inc.'s first-quarter profit jumped 21 percent as demand for the industrial product maker's goods improved. Its results exceeded market expectations, and its shares soared in trading Friday on the news.
The company, based in Sioux Falls, S.D., reported that it earned $19 million, or $1.04 per share, for the quarter. That's up from $15.7 million, or 86 cents per share, in the same quarter last year.
Its total revenue grew 16 percent to $117.9 million, with the biggest gains from its engineered films and applied technology businesses.
Raven Industries makes an array of specialty products for the agricultural, aviation and construction industries. Its products include thick plastic films used on construction sites, parachutes and global positioning devices for farmers.
The company said a strong domestic agricultural market helped the quarter and international sales improved as well. It did report a decline in sales in its Aerostar division, which makes hot-air balloons, weather balloons, military parachutes and other related products. The company cited weak federal spending as the driver behind Aerostar's decline.
The quarter beat analyst expectations of 89 cents per share on revenue of $112.4 million, according to data from FactSet.
Raven Industries said that it expects its films and applied technology business to continue to improve for the year, but anticipates continued variability in its Aerostar business. It stood by its full-year earnings expectations.
Shares of Raven Industries jumped $4.50, nearly 8 percent, to $62.84.