Shares of Conexant Systems rise after 1st-quarter profit, forecast beat expectations

Conexant shares rise after 1Q profit tops Street

NEWPORT BEACH, Calif. — Shares of Conexant Systems Inc. jumped Friday after the chip maker’s fiscal first-quarter earnings and outlook topped expectations.

After the close of trading Thursday, Conexant said sales during the quarter were better than expected and lower costs helped boost profit margins.

The company’s stock climbed 32 cents, or 11 percent, to $3.27 in morning trading.

Conexant said it earned $8.3 million, or 14 cents per share, in the three months ended Jan. 1, reversing a year-earlier loss of $21 million, or 42 cents per share.

Excluding one-time charges related to restructuring, the company said it earned 17 cents per share. Revenue climbed 7 percent $61.8 million.

On average, analysts expected 11 cents per share and revenue of $60.1 million, according to a Thomson Reuters poll.

Conexant’s forecast for the quarter ending in March also surpassed Wall Street expectations. It projects adjusted earnings of 13 cents to 14 cents per share on revenue of $60 million to $61 million.

Analysts were looking for 8 cents per share.