Markets & Finance

JP Morgan Upgrades Powerwave Technologies

Powerwave Technologies (PWAV) posted second quarter earnings per share of 11 cents. JP Morgan upgraded its investment rating on the shares to overweight from neutral.

Analyst Paul Coster says Powerwave's second quarter results were good, with 14 cents pro forma EPS on an if-converted basis on $186.3 million in sales, well ahead of his at-consensus estimates of 10 cents and $175.1 million, respectively. Coster notes customer concentration is in flux, but he no longer sees concentration as a major issue. The analyst raised his estimates to align with the company's third quarter guidance of 12 cents to 14 cents EPS on $186 million to $195 million in revenue. Coster says industry consolidation will lead to pricing power, and the company's acquisition of Remec (REMC) should yield more operating leverage. He also notes 3G-related capital spending activity should sustain modest but diversified top-line growth through calendar 2005.

Hollywood Goes YouTube

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

blog comments powered by Disqus