NEW YORK (TheStreet) -- Shares of Gigamon (GIMO) were jumping 16.27% to $55.09 on heavy trading volume mid-morning Friday as the company late yesterday reported better-than-expected 2016 third-quarter results and raised its fourth-quarter outlook.
Gigamon reported adjusted earnings of 36 cents per diluted share, which surpassed analysts' estimates of 31 cents per share.
Revenue grew 47% year-over-year to $83.5 million, above Wall Street's projected $79.6 million.
For the same period last year, the Santa Clara, CA-based network traffic solutions provider earned 22 cents per share on revenue of $56.7 million.
Gigamon said in a conference call yesterday that it now expects to report adjusted earnings of 36 cents to 38 cents in the 2016 fourth quarter. Wall Street is looking for adjusted earnings of 31 cents per share.
Fourth-quarter revenue is forecast to be in the range of $91.0 million to $93.0 million, while analysts are estimating $86.4 million.
As a result, Credit Suisse upped its price target to $57 from $50 and maintained its "outperform" rating on shares of Gigamon.
Gigamon management indicated that there's strong demand for security offerings, adding that it's a long-term growth opportunity for the company, the firm said.
William Blair analysts noted that Gigamon posted its ninth-straight beat-and-raise quarter and believes that top-line momentum can continue into 2017, according to TheFly.
The firm has an "outperform" rating on the company's stock.
More than 1.8 million of the company's shares changed hands so far today vs. its average 30-day volume of 878,593 shares per day.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Gigamon as a Buy with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. Although no company is perfect, currently the team does not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: GIMO