Ixia Shares Soared: 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 Ixia (NAS: XXIA) have soared today by as much as 15% after the company reported solid fourth-quarter earnings last night.
So what: Revenue hit a record $83.7 million, slimly topping the analyst estimate of $83.24 million. Net income also squeezed by the Street's forecasts at $0.18, while the market was looking for just $0.17.
Now what: CEO Atul Bhatnagar said the strength was due to accelerated demand for the company's 10G and Ethernet solutions, and higher than expected LTE and Wi-Fi testing sales didn't hurt either. He noted that Ixia saw particularly healthy demand from equipment makers and customers in North America. Capstone Investments came out with an intraday upgrade from hold to buy, accompanied with a $16 price target, helping to boost shares further.
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