Shares of Anaheim’s Multi-Fineline Electronix Inc., a maker of flexible circuit boards for mobile phones, continued their bullish run Friday, a day after the company gave an outlook for the current quarter that surpassed Wall Street’s expectations.
Investors sent shares up nearly 16% near the close of trading Friday on a market value of about $645 million.
For the current quarter, Multi-Fineline said it expects sales of $190 million to $205 million. It didn’t give a profit outlook.
Analysts, on average, are looking for profits of $9 million on sales of $192 million.
Chief Executive Reza Meshgin said the company is seeing a boost during the current quarter as its larger customers ramp up production ahead of the holiday season.
The company also is seeing more sales from smaller customers that are upgrading their lineups of smartphone models, and from other players introducing smartphones for the first time, he said in a statement.
“Our unique ability to ramp production quickly has allowed us to win new programs for the most popular devices and actively participate in the growth of the smartphone market,” Meshgin said.
The rosier outlook comes on the heels of Multi-Fineline’s results for the June quarter, which were announed after the close of trading Thursday and beat Wall Street’s expectations.
For the three months through June, Multi-Fineline reported sales of $175 million, up 4% from a year earlier and beating analysts’ expected $171 million in revenue.
The company posted profits of $12 million, up 33% and well ahead of analysts’ expectation of $8 million in profits.
It ended the quarter with $127 million in cash and short-term assets.
Industry watchers often look to contract board makers as early indicators of increasing demand for cell phones and handheld consumer electronics.
Multi-Fineline’s shares have been on a tear,its stock is up 82% since the start of the year.
