A day after Powerwave Technologies Inc. reported lower-than-expected sales and profits in the first quarter, its shares soared more than 10% on a better outlook for the current quarter.
On Tuesday, the Santa Ana maker of amplifiers and other equipment for wireless phone networks said during a conference call that sales in the current quarter should increase by 30% to $250 million, based on orders picking up.
Analysts were expecting $249 million in revenue for the current quarter, according to Reuters Research.
Powerwave also said it expects profit to come in at $12.3 million to $15.6 million for the current quarter. Analysts expect $16.7 million.
Investors cheered the upbeat outlook on Wednesday. One analyst from Deutsche Securities upgraded Powerwave from “hold” to “buy.”
Powerwave shares closed up 10.5% in trading Wednesday.
The news comes on the heels of Tuesday’s earnings report.
Powerwave said its first-quarter sales were $193 million, up from $162 million a year earlier, before it bought assets of Del Mar-based Remec Inc. for about $150 million. Analysts were looking for sales of about $203 million.
Last month Powerwave cut its outlook for the quarter from earlier guidance of $240 million to $250 million in revenue.
Powerwave reported adjusted earnings of $2.3 million, excluding one-time acquisition costs. That was less than half of what it earned a year earlier. Analysts were looking for adjusted earnings of $8.9 million.
Chief Executive Ronald Buschur wasn’t happy with the quarter.
“I want to stress that we at Powerwave are extremely disappointed with our results for the first quarter and we are utilizing all of our resources to ensure that we get back on track starting with our second quarter,” he said in a statement.
The company blamed a canceled telecom equipment contract and seasonal issues when it lowered its outlook in April.
