Shares of Extreme Networks (EXTR -2.28%) rose as much as 13.7% on Tuesday, following the data networking company's release of strong results for the first quarter of fiscal year 2022.
Extreme's first-quarter sales rose 14% year over year, landing at $268 million. Adjusted earnings more than doubled over the same period, jumping from $0.09 to $0.21 per diluted share. Your average analyst would have settled for earnings of roughly $0.16 per share on revenue near $257 million. Moreover, order bookings posted 45% year-over-year growth, up from 36% in the previous quarter.
The company expects lower shipping fees in the coming quarters along with the top-line benefits of recent price increases across Extreme's product portfolio.
Management pointed to Extreme's growing market share in important sectors such as corporate campus networking and cloud-managed networks. The public cloud acts as the connective tissue between the distributed portions of a cloud-managed network solution, giving customers incredible flexibility while also placing high demands on the network's fundamental security.
Extreme Networks stock is trading at the bargain-bin valuation of 11 times forward earnings projections. At the same time, business is booming with double-digit increases on both the top and bottom lines. Though share prices have more than doubled with a price increase of 154% in 52 weeks, the fast-growing tech stock appears to have room for further gains today.