Rectifier Shares Climb After Upbeat 4Q, Guidance

NEW YORK (AP) — Shares of International Rectifier Corp. climbed in early trading Wednesday after the chip maker posted a surprise fourth-quarter profit and offered an upbeat forecast.

Citi Investment Research analyst Terence Whalen also hiked the company's target price to $19 from $17. He cited a growing backlog of orders, signs of economic improvement in the U.S. and industrial sector and declining inventories.

The El Segundo, Calif., company, which makes power management chips for satellites and aircraft, posted a fiscal fourth-quarter profit late Tuesday of $29.1 million, while analysts surveyed by Thomson Reuters were expecting a loss.

The company's outlook for the quarter ending in September also topped Wall Street forecasts. It expects sales of $165 million to $175 million. The average forecast called for $155.6 million.

Shares jumped $1.28, or 7.5 percent, to $18.32 in morning trading.