Arris Group Inc. (ARRS)

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Arris shares surge after 3Q results, outlook
Arris shares soar after 3rd-quarter profit beats analysts' expectations
Wednesday October 29, 2008, 1:48 pm EDT
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NEW YORK (AP) -- Shares of Arris Group Inc. surged Wednesday after the communications technology company posted third-quarter earnings and a fourth-quarter profit outlook above Wall Street's expectations.

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Symbol Price Change
ARRS 6.31 +0.19


{"s" : "arrs","k" : "c10,l10,p20,t10","o" : "","j" : ""} Arris earned $24.1 million, or 19 cents per share, down 14 percent from $27.9 million, or 25 cents per share, in the same period a year earlier.

Excluding one-time items, the company earned 24 cents per share in the latest quarter.

Revenue rose 17 percent to $297.6 million from $254.7 million.

Analysts, on average, were expecting a profit of 21 cents per share on sales of $298.9 million, according to a poll by Thomson Reuters.

The company forecast fourth-quarter earnings of 16 cents to 21 cents per share, adjusted earnings of 22 cents to 27 cents per share, and sales of $280 million to $300 million.

Analysts are predicting adjusted earnings of 20 cents per share on sales of $300.9 million for the quarter.

Kaufman Bros. analyst Raimundo Archibold Jr. called the quarter's results "close enough" and the guidance "good enough." He said while the company's revenue forecast fell below Wall Street's expectations, it will "nevertheless be viewed as satisfactory."

"We view the company as being a prime beneficiary of the intensifying competition among cable operators, (telecommunications companies) and satellite operators," the analyst wrote, keeping a "Buy" rating on the stock.

Shares of the Suwanee, Ga.-based company gained $1.32, or 27.7 percent, to $6.08 in afternoon trading. The stock is down 52 percent year-to-date.