Byline: Mark Le Bien Daily Herald Business Writer
Shares of Lisle-based Tellabs Inc. hit a one-year high Friday after an analyst predicted third-quarter profits will be better than expected.
Merrill Lynch and Co. analyst Joseph Bellace issued a report Friday morning stating "recent conversations with management and industry sources indicate business trends at Tellabs are exceptionally strong."
The company, which also has operations in Bolingbrook, sells a variety of equipment that phone companies use to manage traffic on their networks.
Bellace wrote that Tellabs' earnings for the period ending Sept. 30 should reach 42 cents to 43 cents a share, but he added "Tellabs is a candidate for a positive (earnings) surprise."
The company's revenue for the quarter should increase 42 percent to $215 million compared with the same period last year, he said.
The news lit a fire under Tellabs stock, which rose $5.87 1/2 to close unofficially at $73.37 1/2 per share. Volume was heavy with 2.6 million shares trading hands, about twice the usual daily trading volume.
The company will release third- quarter results in mid-October.
In a phone interview, Tellabs President and Chief Executive Officer Michael J. …