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 Is a Good Destination Pre-Earnings

Stocks in this article: CSCO RAX ARUN

NEW YORK (TheStreet) -- With better-than-expected results coming from Cisco (CSCO) and Rackspace (RAX), the Street seems more optimistic about mobile enterprise company Aruba Networks (ARUN) which will report third-quarter earnings Thursday.

There were doubts that the company could ever recover after a disappointing 2013 that saw its stock drop 14% due to threats from Cisco. But Aruba shares are up 11% in 2014. And not only has the company rebounded nicely, analysts are now convinced that the future is even brighter.

One in particular is Ashok Kumar, analyst at Imperial Capital. Kumar just initiated coverage on the stock with an Outperform rating and a price target of $23, which suggests 15% upside from current value of $19.90 (at 3:30 p.m.). In his research note, while pointing out that Aruba is second only to Cisco in double-digit market share in security, Kumar praised Aruba's innovative capabilities for enterprise networks.

I agree. For that matter, I don't believe Aruba's prospect is any rosier now than it were last year. As I've said recently, too much was being made of one quarter that sent investors into a frenzy. As any growth company, Aruba experienced some growing pains. But it certainly didn't warrant the punishment the company took. On Thursday, all of that should be a distant memory.

The Street will be looking for 20 cents in earnings per share on revenue of $180.8 million, which would represent a year-over-year revenue increase of 23%. Earnings, meanwhile, are projected to grow by 82%. For the full-year, analysts are calling for earnings of 76 cents per share, up, 21%. Full-year revenue calls for $706.4 million, up 18%.

1 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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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