EXFO Up 22% Following Strong Guidance

EXFO Inc (EXFO) U.S. shares rose 21 percent to $9.09 and rallied 25 percent earlier, after the Canadian telecom-testing-equipment maker reported a higher first-quarter profit, and forecast higher second-quarter earnings.

Co. said total sales increased 48.5% to $67.6 million in Q1’2011 from $45.6 million in Q1′ 2010 and 3.7% from $65.2 million in the fourth quarter of 2010. Management had forecasted total sales between $61 and $66 million for the first quarter of 2011.

EXFO forecast net earnings of $0.03 – $0.07 p/sh and sales of $70 – $75 mln for the second quarter.

Shares of EXFO Inc. are currently up $1.59, or 20.61% at $9.16 per share during Monday morning trading. Volume has exploded with more than 1.6 million shares already trading hands compared to a daily average volume of just 34,000. The day’s trading range for the ticker, which closed at $7.57 in the previous trading session and opened today at $8.84, has been between $8.75 and $10.38 per share.

EXFO Inc. has a market cap of $540 million and a price-to-earnings ratio of 0.80. The median Wall Street pps target on the stock is $7.80 with a high target of $10.00

EXFO provides test and service assurance solutions for wireless and wireline network operators and equipment manufacturers in the telecom industry worldwide. The co. was founded in 1985 and is headquartered in Quebec, Canada.

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About Ron Haruni 1068 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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