Late Monday night, Extreme Networks (NASDAQ:$EXTR) posted a fantastic fourth quarter report, which surpassed Wall Street estimates. In response to the good news, the California-based company’s shares increased more than 15% in Tuesday’s trading. However, at around 11:15 a.m. EDT, the stock began to settle down.
Quick Facts: Extreme Networks Fourth Quarter Results:
– Sales increased 28% year over year, putting its value at $179 million
– Adjusted EPS more than doubled from $0.07 to $0.17.
What Does the Future Hold?
The enterprise networking expert’s strong fourth-quarter sales came from solid organic growth in their core switching equipment sales. Thanks to “disciplined” pricing policies, gross margins expanded. Combined, these trends contributed to a fantastic bottom-line performance.
Moving forward, Extreme Networks just finalized one massive acquisition and is preparing to close on another one. Extreme, already the third-largest network company in the equipment industry, is creating its economies of scale through a mixture of plug-in buyouts and solid execution in the core business.
So far this year, share prices have more than doubled. And yes, that includes Tuesday’s sudden increase.
Featured Image: twitter
