Shares Of Applied Signal Jump After 2Q Results

HARTFORD, Conn. (AP) — Shares of Applied Signal Technology Inc. soared Wednesday, a day after the manufacturer of intelligence, surveillance and reconnaissance products said its profit more than doubled in the fiscal second quarter.

Analyst James McIlree of Collins Stewart raised his 2009 profit estimate, saying the Sunnyvale, Calif., company has a strong mix of products and is cutting costs. McIlree increased his estimate to $1.09 per share from 85 cents and raised his revenue estimate to $210 million from $193 million.

Analysts surveyed by Thomson Reuters expect earnings to be 91 cents per share on revenue of $202.5 million.

Shares jumped $3.60, or 16 percent, to $25.59 in morning trading.

Applied Signal's business has improved with the introduction of new products for manned and unmanned air, sea and ground vehicles "and will provide growth as well as margin improvement in the coming quarters," McIlree said in a note to investors.

William Van Vleet, Applied Signal's president and chief executive, said in a conference call Tuesday that programs such as an aerial sensor could be delayed a few months.