Ascend Shares Rise 9.8% Amid Optimism for 3rd-Qtr Results
Alameda, California, Oct. 9 (Bloomberg) -- Ascend Communications Inc. rose 9.8 percent amid optimism the computer- networking company will meet third-quarter profit forecasts because of strong sales of its powerful computer switches.
Ascend shares climbed 3 3/4 to 41 7/8 in trading of 8.2 million. After losing nearly a third of their value between Sept. 28 and Oct. 6, the shares have risen 18 percent since Tuesday.
The company hasn't warned of slowing sales, unlike Northern Telecom Ltd. and others phone-equipment makers, and investors may be viewing Ascend's stock as oversold. Ascend is expected to post strong revenue and earnings growth for the September quarter as phone companies and Internet providers buy Ascend gear to route data traffic on their networks.
''It should be the best growth we've seen from Ascend in quite a while,'' said James Parmelee, an analyst with CS First Boston who rates Ascend ''strong buy.''
The company is expected to earn 31 cents a diluted share, up from 20 cents a year ago, when it reports results Oct. 19. Parmalee and other analysts expect revenue to rise around 25 percent to $360 million.
16:50:57 10/09/1998
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