Brocade Communications Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Brocade Communications Systems (NAS: BRCD) rose more than 12% in the opening moments of today's market action after reporting fiscal fourth-quarter results that soundly beat estimates.
So what: Revenue edged up slightly to $550 million from $549 million in last year's Q4. Adjusted profits improved 23% to $0.16 a share. Analysts were expecting $527.4 million and $0.10 a share, respectively, according to data compiled by Yahoo! Finance.
Now what: Brocade, which competes with Cisco (NAS: CSCO) and Juniper Networks (NAS: JNPR) in data networking gear, has lagged both the S&P 500 and the Dow Jones Industrial Average (INDEX: ^DJI) so far this year. Could last night's beat ignite a holiday rally? I'm asking you. Would you buy shares of Brocade Communications at current prices? Please weigh in using the comments box below.
Interested in more information about Brocade Communications? Add it to your watchlist byclicking here.
At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.The Motley Fool owns shares of Cisco Systems. The Fool owns shares of and has created a bull call spread position on Cisco Systems.Motley Fool newsletter serviceshave recommended buying shares of Cisco Systems. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.