Aruba Networks shares fall after 1Q report

AP News
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Posted: Nov 20, 2009 1:57 PM

Shares of Aruba Networks Inc. fell Friday after the company reported fiscal first-quarter results above analyst expectations, but it may not have been as much of a beat as Wall Street hoped.

Aruba Networks shares fell 82 cents, or 8.6 percent, to $8.76 in afternoon trading.

Aruba Networks said late Thursday that it lost 28 cents per share in the most recent quarter. It earned 4 cents per share when excluding expenses like a $19.8 million legal settlement; analysts polled by Thomson Reuters expected a profit of 3 cents per share.

Revenue rose 10 percent to $57.6 million, which was higher than the $56 million analysts expected.

For the current quarter, the company expects adjusted earnings of 5 cents per share on $58 million to $60 million in revenue. Analysts are looking for 4 cents per share on $57.3 million.

In a client note, Wedbush Morgan analyst Rohit Chopra kept his "Outperform" rating and $11 price target on the stock. The analyst said Aruba's first-quarter results were better than expected in a "still difficult spending environment."

"While the magnitude of the beat and raise was somewhat less than expected, the results were solid and demonstrate that growth is still robust," he said.

The analyst suggested investors take advantage of any drop in the share price by buying the stock.