Mitel shares rise on strong results
(Reuters) - Shares of communications equipment and software maker Mitel Networks Corp (MITL.O) rose as much as 23 percent in early trade on Wednesday after the company reported fourth-quarter results that beat analysts' estimates.
The company said on Tuesday net income from continuing operations rose to 89 cents per share, from 7 cents per share a year earlier, helped by a 34 percent increase in income from its communications solutions business.
Revenue rose 3.5 percent to $157.6 million.
Adjusted profit from continuing operations was 30 cents per share.
Analysts on average had expected an adjusted profit of 24 cents per share on revenue of $154.2 million, according to Thomson Reuters I/B/E/S.
The company is now reaping the benefits of its shift to selling through channel partners, Canaccord Genuity analyst Bobby Burleson wrote in a note.
The analyst upgraded the company's stock to "buy" from "hold", and increased the price target to $6 from $4.
The company's shares were trading up 9 percent at $4.48 on Wednesday on the Nasdaq. They touched a high of $5.01 earlier.
(Reporting by Neha Alawadhi in Bangalore; Editing by Sriraj Kalluvila)