NEW YORK (TheStreet) -- Shares of Ceragon Networks (CRNT) - Get Report were gaining 11.72% to $1.43 on heavy trading volume Thursday after the communication equipment company beat analysts' estimates for earnings in the second quarter.
Ceragon Networks reported earnings of 4 cents a share for the second quarter, above analysts' estimates of break-even earnings for the quarter. Revenue grew 4.8% year over year to $94.8 million for the quarter, compared to analysts' estimates of $95.01 million.
"We reached a very important milestone in the second quarter by clearly restoring our financial stability with solid profitability and positive cash flow," President and CEO Ira Palti said in a statement. "More important, we are much more confident that we can continue the trend of profit improvement."
About 1.9 million shares of Ceragon Networks were traded by 10:54 a.m. Thursday, above the company's average trading volume of about 146,000 shares a day.
TheStreet Ratings team rates CERAGON NETWORKS LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CERAGON NETWORKS LTD (CRNT) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."
You can view the full analysis from the report here: CRNT Ratings Report