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What: Shares of wireless network gear maker Aruba Networks (NASDAQ:ARUN) surged 20% today after its quarterly results and guidance topped Wall Street expectations.
So what: Aruba's second-quarter beat -- EPS of $0.22 on revenue of $155.4 million versus the consensus of $0.19 and $152 million -- and upbeat guidance for the current quarter reinforce recent excitement over the wireless trends working in its favor. Additionally, strong gross margins and leverage led to record operating margins during the quarter, giving investors plenty of good vibes over profitable growth going forward.
Now what: Management now sees third-quarter EPS of $0.20 and revenue of $159 million-$161 million, versus Wall Street's view of $0.20 and $158.3 million. "Our differentiated approach and value proposition continue to resonate with customers," said CEO Dominic Orr. "A number of our new products contributed to our growth as our industry leading product portfolio is helping organizations around the globe securely manage the proliferation of mobile devices and applications accessing their networks." Of course, with the stock busting through its 52-week high today and trading at a forward P/E of 25, much of that growth might already be baked into the price.
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