Shares of Tellabs Inc. rose Tuesday after the telecommunications equipment maker posted a sharp jump in its first-quarter earnings, surpassing Wall Street's expectations amid demand for mobile Internet and other products.
The company earned $45.9 million, or 12 cents per share, up from a profit of $6.5 million, or 2 cents per share, in the same period a year earlier.
Adjusted earnings were 11 cents per share in the latest quarter. The company said these exclude stock-based compensation expenses totaling 1 cent per share. Including these expenses, Tellabs earned 10 cents per share, beating Wall Street's expectations by a penny.
Revenue rose 5 percent to $379.7 million from $361.7 million.
Analysts, on average, expected profit of 9 cents per share on revenue of $371.5 million, according to a survey by Thomson Reuters.
Tellabs expects second-quarter revenue to grow 10 percent to 12 percent compared with the first quarter. Analysts expect revenue of $388 million, an increase of 2 percent.
Morgan Keegan analyst Simon M. Leopold said the company's "growth products and good trends" drove the strong outlook. The analyst kept an "Outperform" rating on the company's shares, saying "strong quarter and encouraging outlook aid the stock in the short term."
Shares rose 54 cents, or 6.6 percent, to $8.76 in afternoon trading. Earlier, the stock hit a 52-week high of $9.16.
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