NEW YORK (TheStreet) -- Shares of Brocade Communications Systems (BRCD) were higher on heavy trading volume after-hours on Thursday following the company's better-than-expected 2016 third quarter results.
After today's closing bell, the San Jose, CA-based networking hardware, software and services supplier reported earnings of 21 cents per share, beating Wall Street's expected 16 cents per share.
Revenue increased 7% year-over-year to $591 million, surpassing analysts' projected $573.43 million.
During the same quarter last year, Brocade earned 27 cents per share on $552 million in revenue.
Brocade forecasts fourth quarter earnings to be in the range of 21 cents per share and 23 cents per share, compared to consensus estimates of 23 cents per share.
Full-year revenues are estimated to be between $630 million and $650 million. Wall Street is looking for $642 million in revenue.
About 8.79 million shares of Brocade traded hands today, above the stock's average trading volume of about 4.68 million 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. TheStreet Ratings has this to say about the recommendation:
We rate BROCADE COMMUNICATIONS SYS as a Buy with a ratings score of B-. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: BRCD