Multi-Fineline Electronix (MFLX: sentiment, chart, options) shares are racing higher after the company released a forecast-beating second-quarter earnings report last night. The company's net income more than tripled to $10.4 million, or 41 cents per share, while sales jumped 45% to $163.9 million. Analysts were expecting a much more modest per-share profit of 27 cents on revenue of $152.5 million.

Gross margin for the quarter posted a strong year-over-year increase, rising from 11% to 18%.

Analysts are impressed by MFLX's second-quarter showing. Matthew Sherrin of Thomas Weisel raised his price target on the shares from $18 to $21, and noted that revenue growth is likely to be strong during the next several quarters. Elsewhere, Needham reiterated its "buy" rating on the stock, while RBC Capital Markets affirmed its "outperform" rating.

At last check, MFLX is up about 17% to $21.86. Today's rally has placed the stock solidly atop its recently resistant 10-week moving average, which is flat-lining near the 20 level.

MFLX could collect some impressive gains if short sellers feel spooked into covering their bearish bets. Short interest on the stock galloped 33% higher during the most recent reporting period, and now accounts for 22.5% of the equity's available float.