Shares of NetApp Inc. hit a new 12-month high Thursday after the company's quarterly results topped Wall Street expectations, helped by an uptick in demand from businesses for data storage equipment.
In a note to clients, Lazard Capital Markets analyst Ryan Hutchinson said NetApp's results suggest a broader economic stabilization, "as customers have resumed long-term projects."
Businesses across the country cut back on technology spending this year as the recession deepened.
NetApp reported net income of $95.7 million, or 27 cents per share, after the close of trading Wednesday, compared with $43.1 million, or 13 cents per share, a year ago.
Excluding special items, the company said it would have earned 37 cents per share, up from 28 cents. On that basis, analysts expected 30 cents, according to a Thomson Reuters poll.
Revenue dipped slightly to $910 million from $912 million. But analysts were looking for only $881.6 million.
Shares of NetApp, which is based in Sunnyvale, Calif., were up $1.24, or 4.2 percent, to $30.86 in afternoon trading. The stock set a 52-week high of $31.25 earlier in trading, nearly triple its year low of $11.27 set last November. Meanwhile, the broader markets declined on weak economic data and the stronger dollar.