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| Saturday, August 05, 2006 |
Oplink Communications Shares Jump After Company Reports More Than Twofold Increase in 4Q Profit
Shares of Oplink Communications Inc., a provider of optical manufacturing, design and integration services, rocketed in afternoon trading on Friday after the company reported a surge in its fiscal fourth-quarter profit.
Income for the quarter was $1.9 million, or 9 cents per share, up from $868,000, or 4 cents per share, last year. Revenue for the quarter was $16.9 million, up 90 percent from $8.9 million last year.
Needham analyst John Harmon raised 2007 earnings estimates to 65 cents per share from a previous estimate for 55 cents per share, and lifted his sales forecast to $80.9 million from $74 million. Analysts polled by Thomson Financial expect earnings of 60 cents per share on $75.7 million in sales for 2007.
"We believe Oplink's formula for above-market growth rates can continue for at least several more quarters," Harmon wrote in a note to clients.
Merriman Curhan Ford analyst Tim Savageaux, who has a "Neutral" rating on the stock, wasn't quite as hopeful. In a note to clients Savageaux noted that the company generated the majority of its earnings from interest income versus operating income, and said he'd hold off on aggressively buying the stock until the company could fatten up its operating profit.
Shares of Oplink, which have traded between $9.59 and $20.55 over the last year, were up $1.59, or 10.7 percent, at $16.40 in afternoon trading on the Nasdaq. |
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