What happened 

Shares of fiber internet specialist Clearfield (CLFD 0.77%) jumped by 28.2% in early trading Friday after the company reported third-quarter 2022 financial results. As of 12:37 p.m. ET, the stock is up 26%. 

So what 

Revenue soared 110% from a year ago to $95 million, including $7 million from the acquisition of Nestor Cables, and net income was up 129% to $17 million, or $1.22 per share. Analysts were expecting $71.4 million in revenue and $0.86 in earnings per share, so the results were far better than expected.

Management said backlog is $165 million and it expects the first half of 2023 to be strong. There's uncertainty about the second half of the year as customers scramble to find enough staff to expand networks, but guidance is still for revenue of $380 million to $393 million in 2023, which would be up 40% to 45% from this year

Now what 

Demand for broadband internet in the communities Clearfield serves is clearly growing. The company has also expanded its manufacturing capacity to meet customer demand. 

One thing to watch in the coming quarters at Clearfield is inventory and debt. The company's inventory was $82.2 million at the end of the third quarter, up from $27.5 million a year ago. And debt and long-term lease liability jumped from $1.6 million to $39.1 million. 

That said, Clearfield is hitting on all cylinders and it's not surprising shares are up big today.