Aaon Jumps 19% After Restating Results and Raising Outlook

Aaon said the corrected results increased reported sales and earnings for the first half of the year. Chief Executive Matt Tobolski said the company had identified errors in its earlier filings and determined that a material weakness existed in its internal control over financial reporting. “We are moving with urgency to remediate the material weakness and further strengthen our control environment,” he said.

The company also reported third-quarter profit of $69 million, or 83 cents a share, compared with $30.8 million, or 37 cents a share, a year earlier. Adjusted earnings per share were 83 cents, above analysts’ estimate of 57 cents, according to FactSet. Revenue more than doubled to $707.4 million from $384.2 million, exceeding the $601.2 million analysts had expected.

Aaon now expects sales to grow 72% to 75% this year, up from its previous forecast of 55% to 60%. Tobolski said the higher outlook reflects third-quarter performance, customer activity across the company’s end markets and progress in increasing throughput and converting its backlog into revenue. He also cited expected benefits from expanded capacity and shorter lead times.