NEW YORK (TheStreet) -- Shares of Brocade Communications (BRCD) were gaining 3% to $12.38 on heavy trading volume Friday after the data storage devices company beat analysts' estimates for earnings in the fiscal second quarter.
Brocade reported earnings of 22 cents a share for the second quarter, above analysts' estimates of 20 cents a share for the quarter. Revenue grew 1.9% year over year to $547 million for the quarter, but below analysts' estimates of $551.33 million.
Looking to the fiscal third quarter, Brocade expects earnings of 21 cents to 23 cents and revenue of $540 million to $560 million. Analysts expect earnings of 22 cents and revenue of $561.4 million for the quarter.
The company also increased its quarterly dividend by 29% to 4.5 cents a share from 3.5 cents a share. The new dividend is payable on July 2 to all shareholders of record as of the close of business on June 10.
About 4.4 million shares of Brocade were traded by 12:49 p.m. Friday, above the company's average trading volume of about 3.9 million shares a day.
TheStreet Ratings team rates BROCADE COMMUNICATIONS SYS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BROCADE COMMUNICATIONS SYS (BRCD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, revenue growth and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."