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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.

NEW YORK (

TheStreet

) -- 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

Nasdaq.com

, 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

(BRCD)

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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

TheStreet

: "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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