Thursday, June 12, 2008

Nortel Repeats Targets; Shares Jump

Nortel Networks (NT - Cramer's Take - Stockpickr) affirmed its full-year outlook during an investor meeting Wednesday, a move that sent its shares higher.

The Toronto-based telecom-equipment giant reiterated remarks it made last month in its first-quarter earnings report, saying it expects revenue to grow in the low single digits compared with 2007. Nortel added that gross margin should be 43% of revenue this year, while operating margin as a percentage of revenue should increase by about 300 basis points compared to last year.

Analysts expect Nortel to post full-year revenue of $11.2 billion, according to Thomson Reuters, which would be an increase of 2.4% over the previous year. Gross margin for the year is expected to come in at 42.6%.

No comments: