Xyratex's Sales Estimate Tops Street; Shares Soar

NEW YORK (AP) — U.K.-based data storage company Xyratex Ltd. said Thursday it expects to report fiscal third-quarter sales of $247 million, well above the average Wall Street forecast. Shares surged on the news.

On average, analysts were expecting sales of $214.3 million for the quarter ended in August, according to Thomson Reuters.

Xyratex said the rosy sales estimate is the result of broad improvements across its different products and customers.

In a statement, CEO Steve Barber said the company's performance indicates "improvements in the overall economy and the relative strength of the storage industry."

The company reports full earnings Sept. 30.

Shares jumped $1.45, or 22 percent, to $8 in midday trading Thursday. The stock has traded between $1.55 and $13.67 over the last year.