Shares of Plantronics (POLY 0.58%), which now goes by the name Poly, have skyrocketed today, up by 24% as of 11:50 a.m. EST, after the company reported fiscal third-quarter earnings. It also issued a rosy forecast that impressed investors.
Adjusted revenue in the fiscal third quarter was $488 million, significantly above the consensus estimate of $430.7 million. That resulted in adjusted earnings per share of $1.47, crushing the $0.94 per share in adjusted profits that Wall Street analysts had been modeling for. The technology company continues to benefit in strong demand for professional headsets amid the ongoing shift to remote work that has been spurred by the COVID-19 pandemic.
"We believe the end markets for professional-grade communications gear have permanently expanded, because work is no longer a place, it's what you do," CEO Dave Shull said in a statement. "In a world less dependent on being in the same room, but still demanding live interaction, the importance of pro-grade, easy-to-use technology that offers a superior remote experience is paramount."
On yesterday's conference call with analysts, management acknowledged that Poly is facing supply constraints, but that "bodes well for sell-through and market share growth" in the current quarter. The company offered strong guidance for the fiscal fourth quarter. Adjusted revenue is expected to be in the range of $440 million to $470 million, compared with the consensus estimate of $414.6 million in sales. That should result in adjusted earnings per share of $0.80 to $1, while analysts are looking for $0.81 per share in adjusted profits.