NEW YORK -- Shares of RF Micro Devices jumped 13 percent in premarket trading Wednesday, a day after the chipmaker issued better-than-expected results and guidance.
RF Micro, which makes chips for devices like cellphones and cable modems, said it earned 3 cents per share on an adjusted basis in its fiscal second quarter, beating the average analyst estimate by 2 cents, according to FactSet. Revenue fell 14 percent to $209.7 million but still topped the average analyst estimate by about $10 million.
Mike Burton of Brean Capital raised his price target on the stock by 50 cents to $6 and raised his estimates as well.
"We believe RFMD is currently benefiting from several ramps in the near term _ notably at Apple, Samsung and MediaTek, but also Windows 8 phones for Nokia _ and we believe more catalysts are coming next year," the analyst wrote.
Cantor Fitzgerald's Dale Pfau was impressed with the company's "awesome outlook," and he raised his estimates and maintained a "Buy" rating on the stock.
Pfau wrote in that RF Micro Devices Inc. "now believes they will exceed the growth rate of the industry over the next year (they said 10-15 percent industry growth, we estimate it at 15 percent). This is what we had been expecting, but it was refreshing to hear the company's bullish tone."
Shares of the Greensboro, N.C., company traded at $4.46, up 53 cents, before the opening bell.