Shares of Multi-Fineline Electronix Inc. surged in Wednesday morning trading after the electronics components maker's fiscal second-quarter results exceeded analyst expectations.
The Anaheim, Calif., company's profit more than tripled and far surpassed analyst expectations. Revenue increased 45 percent to $163.9 million and also beat Wall Street's estimates. Multi-Fineline said it expects similar sales in the third quarter, which would be a bit better than analysts had forecast.
The stock climbed $3.60, or 19.3 percent, to $22.28.
Thomas Weisel analyst Matthew Sherrin said the company sold more high-profit-margin products, so its margins were better than expected. He wrote that Multi-Fineline's revenue growth should be strong over the next few quarters as the company sells more products to major customers Research in Motion Ltd. and Apple Inc.
He added that the company also could develop relationships with handset makers like Nokia Corp. Currently, he said, the company's top customers are Sony Ericsson and Motorola Inc.
Sherrin kept a "Market Weight," or "Neutral," rating on the stock, and raised his price target to $21 per share from $18. The other four analysts covering the stock are evenly split between "Buy" and "Neutral" ratings.
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