New Services Ring Harmonic’s Chimes1/23/2005 7:00 PM Eastern
Harmonic stock surged nearly 33% ($2.45) from Jan. 12-14, after the cable-equipment maker raised its fourth-quarter sales guidance, citing stronger-than-expected bookings.
In a statement released Jan. 12, Harmonic said it expects fourth quarter sales to range between $83 million and $86 million. It had previously estimated sales in the period of between $72 million and $78 million.
Harmonic took off immediately thereafter, closing at $9.19 (up $1.70) on Jan. 13. The stock continued to rise in subsequent trading — reaching $9.94 on Jan. 14 — but fell back slightly to $9.65 on Jan. 19.
Harmonic did not give details on what spurred the increased bookings. But Hudson Square Research analyst Daniel Ernst wrote in a report the revenue bump is consistent with his thesis that cable operators are increasing spending on advanced video services like HDTV and that Harmonic is “among the best positioned vendors supplying gear to all participants in the digital video war including, cable, satellite, broadcast, and now telcos.” Harmonic planned to release its fourth-quarter results after markets closed on Jan. 20.