Emulex 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 data storage specialist Emulex (NYS: ELX) are putting away nice gains today, with shares soaring as much as 17% after an upbeat earnings report.
So what: Second-quarter sales added up to $128.7 million, with earnings per share of $0.26. Both figures toppled the consensus estimates of $126.5 in revenue and $0.22 per share in profit. Emulex was able to execute its recovery plans from the Thailand floods that have plagued the tech industry, and has now restored full production capacity.
Now what: The good news doesn't stop there, as third-quarter guidance was just as optimistic. The company sees revenue between $121 million and $125 million, with earnings of between $0.17 and $0.19 per share, higher than the expectations of $124 million and $0.15 per share, respectively. CEO Jim McCluney chalked up the strength to operational excellence and thinks Emulex has built up momentum that it will continue to ride.
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