Robert W. Baird upgraded its investment rating on Symbol Technologies (SBL) to outperform from neutral, citing the company's third quarter results.
Analyst Reik Read says the company's $432 million revenue and 7 cents earnings per share compare to his $427 million and 3 cents estimates. The company indicates it is booking new business in travel, transport, direct store delivery, and manufacturing, offsetting retail weakness. He noted his reseller contacts had favorable comments on Symbol's new products. He says operational improvements were better than expected, with operating margins exceeding his estimates by 340 basis points. He raised his 20 cents 2005 earnings per share estimate to 24 cents, and his 41 cents 2006 estimate to 45 cents. He says Symbol's valuation appears inexpensive and set an $11 target.