NEW YORK (TheStreet) -- Brocade Communications (BRCD) hit a one-year high of $9.92 Friday after the networking solutions company announced second-quarter results that surpassed analysts' expectations.
Sales fell 4% year-over-year to $565 million, while non-GAAP earnings per share rose 14% to 24 cents. This surpassed analysts' expectations of 20 cents per share on revenue of $550 million.
Brocade also issued second-quarter guidance for revenue in the range of $520 million to $540 million and non-GAAP EPS of 17 to 19 cents. The high end of this guidance aligned with the consensus estimate.
"Brocade achieved solid results in Q1, exceeding our outlook for revenue and profitability," said CEO Lloyd Carney in the company's statement. "This is a transformational year for Brocade and we remain committed to our mission to be the network provider of choice to the world's data centers."
TheStreet Ratings team rates BROCADE COMMUNICATIONS SYS as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BROCADE COMMUNICATIONS SYS (BRCD) a BUY. 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 solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."