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Bed, Bath & Beyond, Brocade On the Move

Bed, Bath & Beyond and Brocade Communications saw heavy volume in extended trading on Wednesday.



) -- Shares of

Bed, Bath & Beyond

(BBBY) - Get Bed Bath & Beyond Inc. Report

rose nearly 5% on heavy volume in extended trading after the home products retailer topped Wall Street expectations with its second-quarter results and boosted its EPS outlook for the full year.

After the closing bell, Union, N.J.-based Bed, Bath & Beyond reported earnings of $181.8 million, or 70 cents a share, for the three months ended August 28, up from a year-ago equivalent profit of $135.5 million, or 52 cents a share, and ahead of the average estimate of analysts polled by

Thomson Reuters

for earnings of 63 cents a share. Sales rose 11.6% year-over-year for the quarter to $2.14 billion with same-store sales surging 7.4%.

The company also forecast earnings of 61 to 65 cents a share for the third quarter, surrounding the current consensus view of 64 cents, and upped its forecast for the full year to 20% growth in diluted earnings per share from a prior 15% projection.

The stock leapt 4.9% to $44.11 in afterhours action, according to

, on volume of around 950,000 . Based on Wednesday's regular session close of $42.05, the shares were up 8.7% so far in 2010, but there has been a pullback since a 52-week high of $48.52 was reached on April 26.

Another stock in the spotlight after the close was

Brocade Communications


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, which tacked on another 2.7% to $6.43 on volume of more than 720,000.

The advance built on a gain of nearly 11% in the regular session amid speculation that the San Jose, Calif.-based networking equipment company could be an acquisition target. Based on Wednesday's regular session closing price of $6.26, Brocade shares are still down 26% year-to-date, but the stock has seen a bounce of 35% since scraping a 52-week low of $4.64 on Aug. 24.

The talk on Wednesday centered on

International Business Machines

(IBM) - Get International Business Machines Corporation Report

as the primary suitor for Brocade with a price of $7.50 per share being mentioned in media reports.

Wednesday's regular session volume of 72.4 million was more than five times the issue's trailing three-month daily average of 13 million, and the heaviest action the stock had seen since May 21, the session after the company's second-quarter report.

John Noh, senior director of corporate communications for Brocade, told


: "We don't comment on rumors or speculation" when asked about the trading in the stock.

Brocade reported its fiscal third-quarter results on August 18, posting non-GAAP earnings of $64 million, or 13 cents a share, on revenue of $504 million. The performance met Wall Street's consensus profit view but the topline number fell short of the $508.4 million estimate.

First Global reiterated a market perform rating on Brocade earlier on Wednesday, saying the stock's valuation "appears cheap" in comparison with its peers.

A notable decliner in extended trades was

Vertex Pharmaceuticals

(VRTX) - Get Vertex Pharmaceuticals Incorporated Report

, whose shares lost 3.7% to $34.85. The company announced plans to sell $375 million worth of convertible senior subordinated notes due 2015 after the bell.

Vertex shares closed the regular session down 15.4% year-to-date, but it had seen a bounce since reaching a 52-week low of $31.25 back on July 1.

Another stock slumping after the bell was

Copart Inc.

(CPRT) - Get Copart, Inc. Report

, which fell 8.2% to $33.10 on light volume of less than 9,000.

The company reported a fourth-quarter earnings from continuing operations of $36.2 million, or 43 cents a share, following the close, a nickel short of Wall Street's consensus view.

Shares of the Fairfield, Calif.-based provider of vehicle remarketing services were down 1.1% year-to-date based on Wednesday's regular session close at $36.06. Wall Street sentiment on the stock was broadly bullish ahead of the report with six of the seven analysts covering the shares at strong buy (4) or buy (2).


Written by Michael Baron in New York.

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Michael Baron


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