Filtronic says results to beat market estimates, shares surge

April 18 Thu Apr 18, 2013 3:39am EDT

Related Topics

April 18 (Reuters) - Filtronic Plc said it expects full-year profit and revenue to beat market expectations, boosted by a strong performance at its wireless unit, sending shares of the network equipment maker up as much as 21 percent.

The company said its wireless business continued to make good progress with sales of its LTE/4G mitigation filters, which prevent 4G services interfering with domestic television receivers, in Europe driving fourth-quarter performance.

"The exact timing and mix of these filter sales to the year-end remains difficult to forecast but the board anticipates that current market forecasts for wireless turnover and profit will be exceeded," Filtronic said in a statement.

Filtronic said revenue is expected to be about 38.5 million pounds ($58.7 million) for the year ending May 31.

"The valuation has long been very attractive, but investors have been unsure about the operational outlook - now any concerns should abate," Panmure Gordon analyst George O'Connor said in a note to clients.

Shares in the company were up 17 percent at 60 pence at 0739 GMT on Thursday on the London Stock Exchange. They have gained nearly 65 percent in the past year. ($1 = 0.6564 British pounds) (Reporting by Brenton Cordeiro in Bangalore; Editing by Roshni Menon)

FILED UNDER: