This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Aruba Networks' Earlier Momentum Fades

Stocks in this article: ARUN DELL CSCO MERU MOT HP

Aruba recently announced an OEM agreement with Dell to deliver its secure mobility solutions to large enterprises, mid-market, healthcare, education and government markets under Dell's "PowerConnect W-Series Powered by Aruba Networks" brand.

Goldman Sachs has a buy rating for Aruba stock and maintains a 12-month price target of $20. Meanwhile, Needham maintains its buy rating for Aruba given its "continued growth trajectory," while raising its price target for the company to $20 from $16.

"We believe that Aruba's current business momentum will likely translate into additional upward estimate revisions," Needham analyst Greg Mesniaeff wrote in an investor note.

The company raised its guidance after announcing fourth-quarter earnings that beat the consensus estimate by a penny and higher-than-expected revenue amid the rapidly growing demand for wireless laptops, smart phones and other mobile device.

For the fourth quarter, Aruba Networks posted non-GAAP net income of $11.1 million, or 10 cents per share, compared with net income of $3.2 million, or 3 cents a share, in the year-ago period.

Revenue for the quarter was $77.3 million, an increase of 45% from the year-ago period.

The Wall Street consensus target for the quarter was 9 cents per share on revenue of $73.53 million.

Many analysts believe that Aruba will continue to grow at a faster rate than many of its networking peers, owing to the growing prevalence of wireless mobile devices in the government, healthcare and education sectors and the company's sharp focus on the wireless mobile space. Major competitors of Aruba include Cisco (CSCO), Meru Networks (MERU), Motorola (MOT) and HP (HPQ).

>>Search for Highest Dividends by Rate or Yield

More on Earnings
Today's Top Earnings
Earnings Calendar

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to:

Get more stock ideas and investing advice on our sister site,

Follow on Twitter and become a fan on Facebook.

Copyright 2010 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,653.33 +296.46 1.71%
S&P 500 2,044.29 +31.40 1.56%
NASDAQ 4,716.9810 +72.6690 1.56%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs