Magnetek Inc. (NYSE:MAG) said Thursday that its fourth-quarter loss matched estimates, though its year-over-year results improved significantly, driven by higher sales in renewable energy markets, causing shares to rise sharply.
The provider of digital power and motion control systems posted a net loss of $468 million, or 1 cent a share, compared with a profit of $285 million, or 1 cent a share, in the same quarter last year, and matching average analyst estimates polled by Thompson Reuters.
Revenue for the Wisconsin-based company was $24.3 million, up 22% from $20 million a year ago, and beating the Street’s view of $21.70 million.
Sales were boosted by higher demand in its renewable energy product line, partially offset by lower sales of material handling and mining products.
“We’re very encouraged by both our incoming order rate and our sales growth in the fourth quarter, and are pleased to report that our continuing operations returned to profitability,” Magnetek CEO Peter McCormick said, noting that each of its primary served markets experienced a sequential increase.
McCormick said the company continues to focus on its renewable energy markets, as they present its “greatest near-term growth opportunities,” which he said is evident by its fourth quarter results, as sales of wind inverters for renewable energy applications grew to nearly $6 million, nearly 25% of total company revenue.
The company expects revenue to grow between 15% and 20% from $80.6 million.