Shares of Spreadtrum Communications Inc. soared Thursday before markets opened and a day after the maker of smartphone chips and other electronics hiked its second-quarter revenue expectations well beyond analyst forecasts.
The Chinese company said late Wednesday that because of strong demand for low-cost smartphones, it was raising its second-quarter revenue forecast to between $270 million and $278 million. Its previous forecast called between $220 million and $228 million in revenue.
Analysts had been expecting revenue of $230.4 million for the quarter, according to FactSet.
The company said in a brief statement it is starting a multi-year cycle in China and emerging markets of subscribers transitioning to smartphones, and it also is benefiting from an expansion of its smartphone portfolio.
U.S.-traded company shares jumped 24 percent, or $4.60, to $23.55 Wednesday in pre-market trading. The stock had only climbed 7.5 percent so far this year, as of Wednesday's closing price of $18.95.