ADC Rallies on Big Beat

Shares rise in late trading.
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(ADCT) - Get Report

beat fiscal second quarter targets but trimmed full-year sales guidance.

The networking equipment maker posted adjusted earnings, excluding stock sale proceeds and restructuring charges, of 35 cents a share. That compares with a 30-cent pro forma profit in the year ago quarter.

Sales for the quarter ended last month were $349 million, compared with $358 million a year ago. Analysts were looking for an adjusted profit of 24 cents on $333 million in revenue, according to Reuters Research.

"Our second quarter sales and earnings in 2007 were stronger than expected and built on our outperformance in the first quarter of 2007," CEO Bob Switz said in a press release Wednesday.

Looking ahead, ADC sees a plateau performance to close out the year. Adjusted earnings for fiscal 2007 will likely be around 89 cents a share on $1.28 billion in sales. Analysts were looking for a pro forma profit of 87 cents a share on $1.3 billion in sales.

"As in fiscal year 2006, our results in the second fiscal quarter of 2007 are likely to represent the peak quarter for the year due to our first-half outperformance," Switz said in the press release. "We currently expect the results in the second half of fiscal 2007 will be relatively flat to down modestly from the first half of fiscal 2007," he added.

ADC shares rose half a dollar, or 3%, to $17.79 in postclose trading Wednesday.