NEW YORK (TheStreet) -- Shares of Infoblox (BLOX) were gaining 5.7% to $21 after-hours Thursday after the communication equipment company beat analysts' estimates for earnings in the fourth quarter of fiscal 2015.
Infoblox reported earnings of 12 cents a share for the fiscal fourth quarter that ended July 31, above analysts' estimates of 10 cents a share for the quarter. Revenue grew 34% year over year to $87 million for the quarter, beating analysts' estimates of $80.57 million.
"Sales execution continued to improve as evidenced by our robust top line performance driven by product sales in the fourth quarter," President and CEO Jesper Andersen said in a statement. "We believe our security and cloud solutions differentiate our platform and have increased our value proposition with our customers and prospects, and contributed to driving larger deals."
Infoblox said it expects to report earnings of 5 cents to 6 cents a share and revenue of $86 million to $88 million for the first quarter of fiscal 2016 which ends on October 31. Analysts expect the company to report earnings of 8 cents a share and revenue of $82.18 million for the quarter.
TheStreet Ratings team rates INFOBLOX INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INFOBLOX INC (BLOX) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 28.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BLOX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.61, which clearly demonstrates the ability to cover short-term cash needs.
- INFOBLOX INC has improved earnings per share by 35.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INFOBLOX INC reported poor results of -$0.44 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus -$0.44).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Software industry and the overall market, INFOBLOX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: BLOX Ratings Report