Filtronic shares jump 25% on raised forecasts

Filtronic shares jumped 25% on Friday as the firm announced that it would beat its full-year expectations for revenue and operating profit after enjoying a strong fourth quarter.

Despite some marginal, short-term weakness in its broadband division, the AIM-listed electronics designer and manufacturer said Q4 trading had been ahead of expectations. 

The board now expects total revenue to be a c.£35m, up 5% from the £33m that analysts were expecting, it also said operating profit was ahead by a similar proportion.

Panmure Gordon said the company continues to surprise on the upside, after announcing that FY17 revenues and profits will be ahead of expectations.

According to Analyst Adrian Kearsey, the Filtronic Wireless business is the "star of the show", with growth driven by newer products:

"With revenues now expected to be in the region of £35m, we are raising our FY17 EBIT forecasts from £1.1m to £1.6m (+43% upgrade)."

Panmure's target price of 29p suggests considerable upside to its current 12p share price.