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What: Shares of network infrastructure specialist QLogic climbed 10% today after its quarterly outlook topped Wall Street estimates.
So what: The stock has been beaten over the past year on worries over slowing server sales, but today's upbeat guidance for the third quarter naturally eases some of those concerns. In fact, management cited rebounding demand across its business for the strong outlook, giving investors some much-needed optimism over a sustained turnaround.
Now what: Management now sees third-quarter EPS of $0.19-$0.20 on revenue of $119 million, up nicely from its prior view of $0.14-$0.19 and $112 million-$118 million, respectively. "The preliminary results were driven by higher-than-expected revenue from Host Products and particularly strong performance from Network Products," QLogic wrote in a statement. More important, with the stock still off more than 40% from its 52-week highs, there's plenty of room left to profit from that operating momentum.
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The article Why QLogic Shares Popped originally appeared on Fool.com.Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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