Universal Electronics eyes best day in 2 months after quarterly beat

Universal Electronics

09/08/2019 17:13

** Shares of smart home technology provider  UEIC.O  jump
~8% at $45.81 in trading at noon; if gains hold, stock to have
best day in 2 months
    ** UEIC beats on both Q2 top line and bottom line, helped by
strong demand for consumer electronics (CE), and home security
    ** Co also forecasts current quarter revenue and profit
range above analyst estimates  urn:newsml:reuters.com:*:nBw74SMCha
    ** Analysts at Dougherty & Co, who raise PT by $5 to $55,
say despite an environment of increased cord-cutting in the
U.S., co delivered record revenue driven by multiple customers
shipping new advanced remote controls and continued momentum in
Home Control
    ** "The transition of the manufacturing of U.S.-bound
product is nearly complete with most of the associated costs
behind us", CFO Bryan Hackworth says, adding that the co is now
optimizing efficiency at Mexico facility 
    ** Brokerage expects the transition to set the stage for
gross margin improvement and improved cash flow generation
    ** Stock also touches highest in 3 months 
    ** All 3 brokerages covering the stock rate it "buy" or
higher; their median PT is $50
    ** Including session's gains, stock up ~76% YTD

 (Reporting by Vibhuti Sharma in Bengaluru)