NEW YORK (AP) — Shares of Emulex Corp. surged in trading Friday, a day after the data-storage equipment and network equipment maker reported that it reversed a year-ago loss to post a profit in its fiscal second quarter.
THE SPARK: On Thursday, the company said it earned $15 million, or 17 cents per share, in the quarter ended Jan. 1. That compared with a year-ago loss of $41 million, or 47 cents per share, when it took major write-downs.
The company said it would have earned 26 cents per share excluding items such as stock-based compensation expenses.
Revenue rose 13 percent, to $128.7 million.
Analysts surveyed by FactSet had expected adjusted profit of 21 cents per share on revenue of $126.4 million.
The company also said it expects third-quarter adjusted earnings of 17 to 19 cents per share on revenue of $121 million to $125 million. Analysts were expecting 14 cents per share on revenue of $120.5 million.
THE BIG PICTURE: Earlier this month, Emulex said that its second-quarter earnings would be above its earlier guidance as it recovered production after Thailand flooding and overcame supply issues. Thursday’s results topped the updated guidance.
THE ANALYSIS: Morgan Keegan analyst Harsh Kumar reiterated his “outperform” rating on Emulex, saying the company is “favorably positioned” to take advantage of Intel Corp.’s Romley launch.
THE SHARES: The shares rose $1.39, or 15 percent, to end at $10.66. That’s near the top of their 52-week range of $5.86 to $12.38.