EXFO Inc (TSE:EXF) (NASDAQ:EXFO), which develops testing, monitoring and analytics solutions for communications providers, announced higher-than-expected 2Q 2019 earnings on Tuesday thanks to a nearly 14% increase in sales for the quarter.
Sales increased more than 14% to US$74 million year-over-year in large part due to a full-quarter contribution from the Quebec-based company’s 2018 acquisition of Astellia, a mobile network performance analysis company.
In 2Q 2019, EXFO reported net earnings of US$5.2 million, or $0.09 per share, as compared to a loss of $4.6 million or $0.04 during the year-ago period.
Earnings beat expectations
Analysts on average were expecting earnings per share of $0.08.
"EXFO delivered outstanding second quarter results with strong revenue and bookings growth, profitability and cash flow generation—all encouraging signs for our T&M and SASS product families and the leverage in our operating model," said EXFO's CEO Philippe Morin. "Clearly, EXFO is on track with its profitable growth strategy amid a rapidly transforming industry.
In 3Q 2019 EXFO is forecasting sales of around US$70 million, yet a projected net loss of $0.04 per share.
EXFO’s shares were up more than 4% to C$5.12 at the close Tuesday in Toronto, and nearly 5% to US$3.86 in the US.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas