Top Performer for Thursday: Neutral Tandem (TNDM)

Neutral Tandem, Inc. (TNDM) made the Zacks #1 Rank Top Performers List for Thursday as a strong first-quarter performance pushed shares higher by more than 11%.

TNDM is a leading provider of tandem interconnection services to wireless, wireline, cable and broadband telephony companies.

For the fifth straight quarter, Wall Street underestimated the company as earnings per share of 27 cents surpassed the consensus by more than 17%. The past 4 quarters have amassed an average surprise of more than 20%.

Revenue moved 45.8% higher to $38.2 million, versus $26.2 million last year. TNDM attributed this rise to an increase in the number of minutes carried over its network, as well as expansion into additional geographical markets.

The quarter's results inspired TNDM to raise its revenue guidance for 2009 to between $158 million and $165 million. Previously , the company was expecting $151 million to $158 million.

Analysts haven't been dramatically pushing estimates higher of late, but the trajectory is a positive one. Expectations for this year are up 2 cents over the past month, including a penny in the past 7 days. Two analysts out of 9 have revised higher in 30 days.

Next year's expectations are about 3.2% better than a month ago. In addition, profit of $1.28 is currently expected to advance about 27% from this year's profit.

TNDM is one of 4 companies from the Utility-Telephone industry on today's Zacks #1 Rank List, which includes 224 stocks. Shares are trading at a higher-than-average volume of 996,000. Normally, the company's volume is about 899,000.

Read the full analyst report on TNDM