Evertz Technologies: Shares Up on Strong Fourth Quarter Results

Evertz Technologies Inc. (EVTRZ.PK) shares were up more than 16% Thursday morning after the company reported better-than-expected fourth quarter results.  

Evertz, an television equipment provider, said sales increased 7% year-over-year in the quarter to C$62.9-million, and net earnings per share increased from C$0.25 a year ago to C$0.28.  For the year, Evertz revenues jumped 36% to C$272.5-million and EPS grew 40% to C1.17.

RBC Capital Markets analyst Steve Arthur told clients that Evertz was able to counter a tough economic environment in the U.S. with strong international sales during the fourth quarter. He expects more of the same in the near term and long term believes several factors, including the FCC mandated transition to digitial transmission in the U.S. in February 2009, will continue to drive industry growth.

He maintained his "sector outperform" rating and increased his price target from C$26 to C$27, representing upside of more than 50%.