Cogent shares rally after 1Q profit skyrockets

The stock jumped $1.45, or 13.9 percent, to $11.86.

South Pasadena, Calif.-based Cogent posted earnings of $14.4 million, or 16 cents per share, during the first three months of the year, up from $6.2 million, or 6 cents per share, in the first three months of 2007.

Analysts, on average, had expected earnings of 9 cents per share, according to a poll by Thomson Financial.

Soleil-Mackinac Research analyst Fred Ziegel praised the results. He added that the company's expectation for an increase in revenue from the Department of Homeland Security during 2008 is positive.

"At the end of the day what you're seeing is a reaction to a stock that's been sitting ... for a long time and basically waiting for people to get a more positive spin," Ziegel said in a phone interview. "(The company) is back into a growth mode with Homeland Security, and the rest of the business continues to be reasonably well spread out."

Ziegel currently rates shares "Hold."