COSTA MESA, Calif. (AP) — Shares of Emulex Corp. jumped Tuesday after the company’s preliminary financial results for its fiscal second quarter topped expectations.
The company said results were driven by broad demand for its data storage equipment. Shares jumped $1.48, or 13.3 percent, to $12.62 in morning trading after rising to a 52-week high of $12.68 earlier in the session.
Late Monday, Emulex posted earnings of 9 cents to 10 cents per share on sales of $107 million to $108 million. Excluding special items, the company said it would have earned 16 cents to 17 cents.
Results exceeded the company’s own projections, which called for 10 cents per share in adjusted earnings on sales of $88 million to $92 million.
Analysts polled by Thomson Reuters were looking for 12 cents per share on sales of $90.7 million. Analysts typically exclude special items from their estimates.
In a note to clients, Jefferies & Co. analyst Munjal Shah said, “Emulex is seeing improving demand as IT spending recovers.” He reiterated a “Buy” rating on the company.