November 10, 2009 / 5:25 PM / 9 years ago

Strong results boost Rocky Mountain Dealerships shares

* Shares up 6.5 percent on the TSX

* Q3 EPS C$0.34 vs C$0.19 year earlier

* Analysts forecast C$0.28 a share

* Revenue up 56 percent

TORONTO, Nov 10 (Reuters) - Shares of Rocky Mountain Dealerships (RME.TO) jumped 6.5 percent on Tuesday after the agriculture and construction equipment broker said strong sales growth helped it record higher than expected earnings.

The company earned C$4.9 million ($4.7 million), or 34 Canadian cents a share, for the third quarter, ended Sept. 30. That compared with net income of C$2.5 million, or 19 Canadian cents a share, a year earlier.

Rocky Mountain, which sells, rents and leases new and used agriculture and construction equipment, said net sales for the quarter were up 56 percent at C$145.8 million.

Analysts, on average, had expected the company to earn 28 Canadian cents a share, before items, on revenue of C$135.3 million, according to Thomson Reuters I/B/E/S.

Shares of the company were up 42 Canadian cents at C$6.86 on Tuesday around noon on the Toronto Stock Exchange.

Rocky Mountain said new equipment sales were up 49.2 percent at C$69.4 million. Used equipment sales more than doubled to C$46.1 million. Revenue generated from product support grew 25.4 percent to C$29.1 million.

It said sales to the construction industry were down, while the agricultural market continued to show strength.

“Financial stimulus packages in Canada and the U.S.A. will help the recovery of the construction equipment market,” the company said in a statement. “We expect these funds will flow through to the construction equipment customers of the company in 2010.”

Rocky Mountain has 24 dealership branches in the western provinces of Alberta, Saskatchewan and Manitoba.

$1=$1.05 Canadian Reporting by John McCrank; editing by Rob Wilson

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