Why Infoblox Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Infoblox (NYSE: BLOX  ) spiked 15% higher Friday after the automated network-control specialist released its fiscal fourth-quarter results.

So what: Quarterly net revenue rose 40% year over year to $63.1 million, which translated to GAAP net income of $1.5 million, or $0.03 per diluted share, compared to a net loss of $0.10 per diluted share this time last year. On an adjusted basis, however, Infoblox turned in earnings of $0.14 per share. For reference, analysts on average were expecting adjusted earnings of just $0.09 per share on sales of $59.26 million.

In addition, the company provided in-line fiscal first quarter guidance for non-GAAP earnings per share of $0.08 to $0.09, and better-than-expected net revenue of $62.5 million to $63.5 million.

Now what: Those results were enough to spur at least one positive note from analysts at UBS, who reiterated their buy rating on the stock, and raised their price target to $42 per share, from $35.

Though shares currently look pricey trading at more than 52 times next year's earnings estimates, if Infoblox can keep up its current momentum and continue to accelerate growth, there's certainly a good chance the company will be able to grow into its steep valuation.

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