NEW YORK ( TheStreet) -- Shares of Frequency Electronics (FEIM) surged in late trades on Wednesday after the maker of synchronization technology products for satellites and aircraft reported its fiscal 2011 results and gave a bullish outlook for fiscal 2012.
"The outlook for Frequency Electronics continues to be extremely positive," the company said in its press release after posting a profit of $6 million, or 72 cents a share, for the year with revenue rising 8% to $53.2 million. "We anticipate continued high levels of funding on our major DOD contracts because they support mission-critical programs. For fiscal 2012, we expect strong revenue growth and increasing profitability."
The latest results included a gain of $3.7 million from the reversal of a deferred tax valuation allowance.
The stock was last quoted at $11.20, up 16.5%, on volume of around 45,000, according to Nasdaq.com. Based on Tuesday's regular session close at $9.61, the shares were up 38% so far in 2011.Frequency Electronics, based in Mitchel Field, N.Y., isn't covered by any analysts, according to Thomson Reuters data. The company said its backlog has reached a "record" high of $70.8 million as of the fiscal year's end on April 30, and that revenue from space programs continues to improve, along with gross margins, which rose to 37.5% from 36%. Other stocks active in Wednesday's extended session included Yum! Brands (YUM), which gained 2.4% to $56.93 on volume of 1.15 million after the operator of KFC, Pizza Hut and Taco Bell restaurants posted better than expected quarterly results because of strong sales in China; and Marriott International (MAR), which fell 4.3% to $35.55 on volume of around 330,000 after the hotel operator gave a disappointing revPAR outlook. -- Written by Michael Baron in New York.
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