Ahead Of The Bell: Aruba Networks Up

NEW YORK (AP) — Shares of Aruba Networks Inc. advanced in premarket trading Friday after the wireless networking technology company posted better-than-expected sales for its fiscal fourth quarter and offered a strong revenue forecast for the current period.

On Thursday, the company reported an 11 percent sales increase to $53.3 million, beating analysts' expectations of $49 million according to a Thomson Reuters survey. Its adjusted earnings of 3 cents per share topped analysts' expectations of a profit of 2 cents per share.

The earnings outlook for the current quarter, which ends in October, was in line with analyst forecasts, but Aruba's revenue prediction was at the high end of estimates.

Lazard Capital Markets analyst Ryan Hutchinson said the quarter's strong results show that business is gaining momentum for Aruba Networks. He kept a "Buy" rating on the company and raised his share price target to $11 from $9.

The analyst added the results were driven by "impressive product revenue growth," with the company "continuing to benefit from multi-quarter deployments in core verticals as well as witnessing strength in new customers."

Sunnyvale, Calif.-based Aruba sells equipment used to build wireless local area networks. Such networks cover small areas such as offices or schools.

Jefferies analyst William Choi reiterated a "Buy" rating on the company and raised his target price to $10 from $8.50.

Shares of Aruba rose $1.36, or 16.7 percent, to $9.50 in premarket trading. The stock has ranged from $1.85 to $9.28 over the past year.