QLogic shares climb on strong 3rd-quarter results

QLogic stock soars more than 13 percent after 3rd-qtr results beats Wall Street expectations

Associated Press

NEW YORK (AP) -- QLogic's stock rose more than 13 percent Friday after the computer networking equipment supplier's fiscal third-quarter results beat analysts' expectations.

THE SPARK: After the market closed Thursday, QLogic Corp. reported adjusted earnings from continuing operations of 20 cents per share, and revenue of $119.4 million for the three months ended Dec. 30. Analysts surveyed by FactSet, on average, expected earnings of 17 cents per share on revenue of $115.6 million.

THE ANALYSIS: Cantor Fitzgerald's Paul Mansky said in a client note that QLogic's quarterly performance topped his estimates, with total revenue helped by increased revenue from its network products segment.

Mansky said two new products in development, including a Flash-equipped adapter line, could provide a small revenue boost this year. The company has been aggressive in investing in product development in the past year, he said, which creates the potential for improving earnings later this year.

The analyst reaffirmed a "Hold" rating and increased the Aliso Viejo, Calif., company's price target to $11.50 from $10.50.

SHARE ACTION: Shares of QLogic Corp. gained $1.43, or 13.2 percent, to $12.24 in afternoon trading, after earlier changing hands as high as $12.90. Over the past 52 weeks, the stock has traded between $8.63 and $19.

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