Why Ixia Shares Jumped
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) jumped today by as much as 26% after the company reported better-than-expected earnings.
So what: Second-quarter revenue rose to $92.3 million, resulting in record non-GAAP net income of $14 million, or $0.18 per share. Both top and bottom lines registered beats compared to the consensus estimates of $90.1 million in sales and a $0.16 per share profit.
Now what: CEO Vic Alston cited strong demand for the company's Ethernet, LTE, and Wi-Fi offerings, and its organic business before including recent acquisitions generated record sales and adjusted operating profit. Ixia recently purchased Anue Systems and has a pending transaction for BreakingPoint Systems as it looks to grow in the network visibility and security markets.
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The article Why Ixia Shares Jumped originally appeared on Fool.com.Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.