Thursday, September 2, 2010

Harry Winston (NYSE:HWD) Beats Earnings Expectations

Harry Winston Diamond Corporation (NYSE:HWD) handily beat earnings expectations for the second quarter, generating earnings per share of $0.22, against analysts' expectations of $0.04 a share.

Revenue in the quarter came to $153.7 million, up from $94.8 million in the same quarter last year, an increase of 62 percent. Profits ended at $16.5 million, in comparison to losing $24.5 million, or 32 cents a share, in 2009's second quarter.

Both its diamond retail and mining segments enjoyed stronger results, producing the improved numbers.

Significantly helping the company was currency exchange gains, which increased to $3.3 million, up from the loss of $25.3 million in foreign exchange in the same period of 2009.

Retail diamond sales rose to $66.9 million, a gain of 37 percent, while rough diamond sales ended the quarter at $86.8 million, an increase of 89 percent.

Early in August Harry Winston bought back the 9 percent stake Kinross Gold (NYSE:KGC) for $220 million, bringing its stake in the Diavik diamond mine back to 40 percent.

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