Ceragon Jumps Most in 1 Month on Order: Israel Overnight
Ceragon Networks Ltd. (CRNT), a maker of systems for mobile-phone and Internet providers, rose the most in a month in New York after reporting orders of $3.5 million that tempered investors’ concern about a revenue drop.
The shares climbed 2.3 percent to $3.11 yesterday, the most since June 7, to trade 0.3 percent above the stock listed in Tel Aviv. The Bloomberg Israel-US Equity Index gained a second day, led by Caesarstone Sdot Yam Ltd., a maker of quartz countertops. ClickSoftware (CKSW) Technologies Ltd., whose second-biggest investor is George Soros’s Soros Fund Management LLC, extended a three-day plunge to 15 percent.
Ceragon, which got 16 percent of sales from the Asia-Pacific region last year, said yesterday that a “large” mobile operator in the region placed the orders. Ceragon is still down 20 percent since April 8, when Chief Executive Officer Ira Palti cut revenue forecasts. The company has reported losses for nine consecutive quarters and is projected to post the biggest decline in annual sales in more than a decade, according to the average estimate of analysts surveyed by Bloomberg.
The new order “shows some momentum,” Joseph Wolf, an analyst at Barclays Plc, who rates the stock the equivalent of hold, said in a telephone interview from Tel Aviv yesterday. “But it’s not an inflection point in the weak demand environment that’s an overhang on Ceragon’s growth rate. It’s a good company with a very tough end market.”
The Bloomberg Israel-US gauge rose 0.7 percent to 92.15, the highest price since June 18. The benchmark TA-25 Index (TA-25) advanced for the first time in three days, adding 0.7 percent to 1,214.69 at 10:24 a.m. in Tel Aviv.
Ceragon’s Tel Aviv shares this morning slipped 0.8 percent to 11.19 shekels, or $3.09, in volume of 4 percent of the three-month daily average.
Caesarstone (CSTE) jumped 6 percent to $29.10, the highest price since May 30. The shares have rallied 82 percent in 2013.
ClickSoftware, an Israeli software developer, declined 4.4 percent to $7.11, the lowest price since April 23. Earlier this week, the Petach Tikva, Israel-based company reported profit and revenue that trailed analysts’ projections.
To contact the reporter on this story: Jessica Summers in New York at email@example.com
To contact the editor responsible for this story: Brendan Walsh at firstname.lastname@example.org