Neutral Tandem (NASDAQ: TNDM) provides third-party interconnection services to competitive telecommunications carriers. In a nutshell, TNDM helps wire-line, wireless and broadband customers talk to each other -- even if they all pay their bills to different companies. Neutral Tandem offers services in more than 60 U.S. metropolitan markets and is a critical part of our nation's communications network. The company's customers include Sprint Nextel, Comcast Cable and AT&T.
Neutral Tandem earned $9 million or 27 cents per share in the first quarter, compared with $4 million or 12 cents per share in the year-ago period. TNDM's earnings beat estimates by four cents for a 17.4% earnings surprise, sending shares up 15.6% in just the week following the announcement!
Revenue also rose for the quarter, up 45.8% to $38.2 million due to higher traffic over its network and expansion into new markets. As a result, Neutral Tandem raised its full-year revenue outlook. The company now expects 2009 revenue of $158 million to $165 million, up from its prior forecast of $151 million to $158 million. Shares rallied after the announcement, pushing our total return in this stock up to a jaw dropping 53.8%.
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