Lucent Spinoff Avaya Raises Profit Forecast

Here’s something Wall Street doesn’t see much anymore: a technology company raising earnings expectations.

Shares of Avaya Inc., the office-networking unit spun off last year from Lucent Technologies, jumped Tuesday after the company raised its earnings forecast for the year ending in September to $1.27 a share from $1.23.

The stock (AV) surged $2.56, or 22%, to $14.06 on the New York Stock Exchange. Former parent Lucent rose $1.44, or 9.4%, to $16.81.

Basking Ridge, N.J.-based Avaya said in a filing with the U.S. Securities and Exchange Commission that it expects “mid-single-digit” revenue growth this year, and that full-year net income will double. Avaya had 2000 sales of $7.68 billion.

“The company sounded confident about its prospects,” said Ariane Mahler, analyst with Dresdner Kleinwort Benson who has a “buy” rating on the stock. “That stands out in this market climate.”

Avaya shares still are down 37% from their high of $22.38, reached after the spinoff.