Shares of Santa Ana-based Powerwave Technologies Inc., a maker of gear for wireless phone networks, jumped Monday after an analyst upgraded the stock on expectations that the company will turn a profit in the fourth quarter.
The stock rose about 2% on a market value of about $783 million in midday New York trading after analyst Richard Valera of Needham and Co. upgraded Powerwave from “hold” to “buy.”
Valera said he’s looking for increased spending on networks by wireless carriers, including Sprint Nextel Corp. and Verizon Communications Inc., in the fourth quarter, according to an Associated Press Report.
He said Powerwave should get a boost from AT & T; Corp., which is likely to buy more products to replace older ones during the fourth quarter, Valera said in the report.
For the third quarter, analysts are looking for a loss of about $10 million on sales of $202 million. For the fourth quarter, analysts are looking for Powerwave to break even on sales of about $231 million.
Powerwave sells amplifiers, antennas, filters and other products that boost signals on wireless networks.
It has been operating at a loss for five consecutive quarters. The company’s stock is off about 30% for the past year.
The company has struggled because consolidation among wireless carriers has shrunk Powerwave’s pool of customers by as much as 30%, according to Chief Executive Ron Buscher.
