NEW YORK (TheStreet) -- Brocade Communications Systems (BRCD) was falling 3.5% to $8.35 Friday despite beating analysts' estimates for the second quarter and guiding in-line with estimates for the third quarter.
For the second quarter Brocade reported earnings of 19 cents a share, beating the Capital IQ Consensus Estimates of 18 cents a share by 1 cent. Revenue fell -0.3% from the year-ago quarter to $537 million, higher than analysts' expected $531.5 million.
Looking forward to the third quarter Brocade expects revenue of $525 million to $545 million, while analysts expect revenue of $531.7 million for the quarter. The company sees earnings of 18 cents to 20 cents a share in the quarter, compared to analysts' estimates of 19 cents a share.
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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, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."