Q1 revenue of $146.8 million topped guidance of $125 million to $135 million; the company posted an operating profit of $3.7 million, after forecasting a loss of $4 million to $10 million for the quarter. The company sees Q2 non-GAAP profits of 8-12 cents a share, well above the Street at four cents.
Baird analyst Reik Read responded to the strong results by boosting his rating on the stock Wednesday morning to Outperorm from Neutral, while lifting his price target to $16, from $12. “The company is seeing some signs of a bottom and inventory levels appear reasonable, and cost-reduction initiatives are showing signs of success,” he writes. “We see several catalysts including share repurchases, unified communication rollouts” and a “strategic announcement” with its Altec unit. Plantronics has been options for the unit, which Read says has reduced earnings on an annual basis by about 25 cents a share.
Read upped his March 2010 EPS estimate for the company to 58 cents, from 20 cents.
PLT Wednesday is up $3.41, or 25.1%, to $16.98.