Westell Soars; Alliance Data Dips

Shares of Westell Technologies jumped in late trades on a strong quarterly report, while Alliance Data Systems' stock fell because of a disappointing outlook.
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NEW YORK (

TheStreet

) --

Westell Technologies

(WSTL) - Get Report

was a small-cap standout in afterhours action after the Aurora, Ill.-based maker of broadband equipment reported a 65% year-over-year jump in its fiscal second-quarter profit.

Late Wednesday, Westell posted earnings of $4.8 million, or 7 cents a share, for the three months ended Sept. 30, up from a profit of $2.9 million, or 4 cents a share, in the same period a year earlier. Revenue rose 8% in the latest quarter to $51.1 million from $47.4 million last year. The single analyst covering Westell was looking for a profit of 4 cents a share, according to

Thomson Reuters

data.

"We are very pleased to be reporting increases in revenues and earnings, along with very strong cash flow," said Rick Gilbert, Westell's chairman and CEO, in a statement. "This demonstrates excellent execution and progress across the entire company."

The stock was last quoted at $2.73, up 26.4%, according to

Nasdaq.com

, on volume of more than 25,000. Based on their regular session closing price of $2.16, the shares were already up 70% so far in 2010., and look poised to break through a 52-week high of $2.42 set on Sept. 15.

Another big gainer among small-caps was

Netlist

(NLST)

, which was quoted at $3.77, up almost 11%, on volume of nearly 80,000. The Irvine, Calif.-based company

issued a press release

after the close hyping a demonstration of "100 virtual machines" running on a single server using its HyperCloud memory technology.

Based its regular session close at $3.41, Netlist's stock was down about 35% year-to-date. The company is expected to report its third-quarter results on Nov. 11.

Among the more high-profile names getting a lift on their quarterly results were

Ebay (EBAY) - Get Report

, advancing more than 7% at last check, and

Netflix (NFLX) - Get Report

, gaining almost 9%..

Taking a hit in late trades was

Alliance Data Systems

(ADS) - Get Report

, which was last quoted down 4.5% at $59.86 on volume of around 180,000.

The Dallas-based provider of marketing products and services topped Wall Street's expectations with its third-quarter core profit of $1.55 a share on revenue of $702.4 million, but its outlook looks like a disappointment. Alliance said it now sees core EPS of $5.70 for the whole of fiscal 2010, and a profit on the same basis of $6.75 per share in fiscal 2011. The current average analysts' estimates are for EPS of $5.82 and $6.94 for the respective periods.

Also seeing some volume in the extended session was

Xerox

(XRX) - Get Report

ahead of its quarterly report before Thursday's opening bell. More than 300,000 shares changed hands but the stock was last quoted as flat with its regular-session finish of $11.09. The shares are up 29.3% year-to-date, and were reportedly received an upgrade to buy from JMP Securities late Wednesday afternoon.

Wall Street is expecting the Norwalk, Conn., maker of copiers and other document processing products to report earnings of 21 cents a share for the September period on revenue of $5.45 billion.

Even before the JMP upgrade, analysts were bullish on Xerox ahead of the report. Of the 10 analysts covering the stock, seven were at either strong buy (4) or buy (3). Xerox has topped Wall Street's expectations for six straight quarter, beating the consensus profit view by an average of around 26% over that span.

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Written by Michael Baron in New York.

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Michael Baron

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