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Major Movers on May 17; ARUN, BRCD, ADSK, JCP, DE

Shares of Aruba Networks Inc. (NASDAQ: ARUN) tumbled about 26.50% by afternoon trade after the wireless equipment maker, late last evening, said that it swung into third quarter loss as the bottom line was felt the impact due to rising expenses, higher taxes. The Company also provided disappointing guidance for the fiscal fourth quarter. The Company now anticipates earnings come in the range of 10 cents to 12 cents a share on revenue range of $148 million to $150 million. Analysts polled by Thomson Reuters had most recently forecasted earnings of 17 cents a share on revenue of $157 million. Excluding onetime items, adjusted earnings stood at 11 cents a share in the fiscal third quarter compared to 16 cents a share, in the year-earlier quarter. Revenue jumped 12% to $147.1 million. Earlier in May the Company provided earnings guidance of 11 to 12 cents a share on revenue range of $144 million to $147 million.

Shares of Brocade Communications Systems Inc. (NASDAQ: BRCD) plunged 4.15% by afternoon trade after the networking equipment supplier late on Thursday reported lackluster fiscal second quarter results. Adjusting impact of onetime items, non-GAAP earnings came at 17 cents a share compared to 15 cents in the same quarter of last fiscal. Analysts’ consensus estimate was for 15 cents a share, according to a data compiled by Thomson Reuters. Revenue for the period came at $538.8 million down from $543.4 million, in the year-earlier quarter. Analysts’ consensus estimate was for $544.24 million. Revenue from the storage area networking segment declined 6% to $374.4 million as demand from OEM partners remained subdued while revenue from IP networking segment soared 15% to $164.4 million, driven by solid demand for routing and Ethernet switches.

Revenue fell 6% to $374.4 million in storage area networking segment owing to weakness in demand from OEM partners while it jumped 15% to $164.4 million in IP networking segment, thanks to robust growth in Ethernet switch and routing business.

Shares of Autodesk Inc. (NASDAQ: ADSK) slumped 7.40% by afternoon trade after the software company late last evening reported 30% fall in fiscal first quarter net income due to decline in margins and lower revenue. For the fiscal first quarter ended April 30, the company posted non-GAAP earnings of $96.3 million or 42 cents as share down from $109.1 million or 47 cents a share, in the same quarter of last year. Analysts’ consensus estimate was for earnings of 45 cents a share, according to a data compiled by Thomson Reuters. Revenue contracted 3% to $570.4 million from $588.6 million, missing analysts’ consensus estimate for $583.40 million.

Shares of JC Penney Company Inc. (NYSE: JCP) fell about 2.40% by afternoon trade after the beleaguered department chain reported wider-than-expected quarterly loss on Thursday . Revenue and same-store-sales also plunged.

Shares of Deere & Company (NYSE: DE) lost about 2.50% by afternoon trade after Goldman Sachs downgraded the stock to “sell” from “neutral”. The research report said that 15% capital expenditure  fall predicted for the U.S. farm industry will hurt company’s financials.

 


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