PARIS-Shares of Alcatel rose dramatically after the company reported operating profits will rise to $95.6 million in the first quarter, up from a loss of $147.3 million in the first quarter of last year.
On the New York Stock Exchange, shares in the company were up almost $4 per share to $45.56 by midday Friday.
“They’ve got the strategy, they’ve got the products, and they’ve got the will,” Nicolas Voyer, an analyst at Meeschaert-Rousselle told Bloomberg. “This is a new Alcatel and it is benefiting from the boom in the telecommunications industry.”
Voyer predicted Alcatel shares could climb to as high as $382.52 in Europe within the year. At press time, Alcatel shares were up 13 percent to $230.72 in Europe.
The company said it did not expect growth to continue at the same pace throughout the year, but it does expect to surpass its target of a 6.5-percent operating margin.
Alcatel is expected to announce first-quarter financial results May 4.
