SDL shares moved up $38.13, or 13 percent, to $327.25 Friday after it easily hurdled analysts' estimates in its third quarter.
The news also bumped soon-to-be parent JDS Uniphase (Nasdaq: JDSU) 10 percent.
SDL (Nasdaq: SDLI) earned $40.4 million, or 45 cents a share, on sales of $146.5 million.
First Call Corp. consensus pegged it for a loss of 38 cents a share in the quarter.
The $146.5 million in sales marks a 208 percent jump from the year-ago quarter when it made $7.8 million, or 11 cents a share, on sales of $47.5 million.
On Friday, Credit Suisse First Boston analyst James Parmelee lifted his fourth-quarter estimate for SDL to 49 cents a share from 44 cents. For 2001, he raised his outlook to $2.50 from $2.00.
ABN Amro increased its earnings estimate for 2000 to $1.51 per share from $1.35 and for 2001 to $2.51 from $1.97. Revenue estimates were also raised for 2000 to $498 million from $484.7 million and revenues in 2001 lifted to $1 billion from an earlier forecast of $821.4 million.
"SDL's record financial performance in the third quarter reflects our leadership position in multiple sectors of the fiber optics communications market," said CEO Donald Scifres in a prepared release. "With the many long-term contracts and design wins accomplished this year, we are able to project that SDL will be a $1 billion company in 2001.''
Including merger expenses, purchased intangible amortization charges, non- cash stock compensation expense and payroll tax on stock options, the company reported a net loss of $115.8 million, or $1.34 a share.
JDS will report its first quarter results next week. Analysts are expecting the fiber-optic component supplier to post a profit of 16 cents per share.
It announced its acquisition of SDL in July, in a deal worth around $41 billion.
SDL watched it shares rally up to a 52-week high of $460.50 in July after falling to a low of $38.81 last October.
All 19 analysts following the stock rate it either a "buy" or "strong buy."
Analysts expect it to earn $1.37 a share in the fiscal year.
First Call Corp. consensus expected it to lose 9 cents a share in the quarter.
This was the company's first quarterly earnings report since its successful initial public offering in July.
Analysts expect it to post a loss of 37 cents a share in the fiscal year.