NEW YORK (TheStreet) -- Shares of Polycom (PLCM) jumped in extended trades on Thursday after the Pleasanton, Calif.-based maker of video conferencing and other communications products topped Wall Street's profit view for the latest quarter.
The company posted an adjusted profit of $43 million, or 48 cents a share, for its fiscal first quarter ended March 31 on revenue of $344 million, up from year-ago equivalent earnings of $25 million, or 29 cents a share, on revenue of $276 million, and ahead of the average estimate of analysts polled by Thomson Reuters for earnings of 42 cents a share on revenue of $337.8 million.
The stock was last quoted at $56.47, up 9%, on after-hours volume of around 112,000, according to Nasdaq.com. Based on a regular-session close at $51.90, the share were already up 56% in the past year, hitting a 52-week high of $52.50 on April 1.
"Driven by record revenues, strong gross margins, and operating cost management, Polycom's operating income grew both sequentially and year-over-year in the first quarter," said Michael Kourey, the company's chief financial officer, in a statement. "This is especially noteworthy given typical first quarter seasonality, as these results illustrate the demand for Polycom's UC solution and the margin growth opportunity for our business."The company also noted its positive operating cash flow of $46 million in the first quarter was its best ever, and that, as of March 31, it had $539 million in cash and investments and no debt. Analyst sentiment was mixed ahead of the report. Of the 17 analysts covering the shares, nine rate it at either strong buy (6) or buy (3), while the remaining eight are at hold. Wall Street's median 12-month price target on the stock sits at $50. International Game Technology (IGT) was another standout in after-hours trades after the Las Vegas maker of gaming machines reported an above-consensus profit for its fiscal second quarter and lifted its outlook for the year. The shares jumped 10% to $17.90 on after-hours volume of more than 250,000 after the company reported earnings from continuing operations of $70 million, or 23 cents a share, for the March-ended quarter, 3 cents ahead of the average estimate of analysts polled by Thomson Reuters.
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