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Brocade, Nordstrom: After-Hours Trading

ByMichael Baron, Deputy Managing Editor

NEW YORK (TheStreet) -- Shares of Brocade Communications surged almost 6% in late trades on Thursday after the networking equipment maker beat Wall Street's expectations for its fiscal first quarter amid strong sequential revenue growth. After the closing bell, San Jose, Calif.-based Brocade reported adjusted earnings of $61 million, or 12 cents a share, on revenue of $546 million for the three months ended Jan. 29, down from a year-ago equivalent profit of $66 million, or 14 cents a share, on revenue of $550 million, but ahead of the average estimate of analysts polled by Thomson Reuters for earnings of 10 cents a share in the January period on revenue of $543 million. The stock was last quoted at $6.37, up 5.8%, on volume of 4.3 million, according to Nasdaq.com. That move follows a 5%-plus gain in Thursday's regular session to close at $6.02 on volume of 51.1 million, almost four times its trailing three-month daily average churn of 13.3 million. Brocade also gave a bullish outlook for its fiscal second quarter ending in April, forecasting adjusted earnings of 10 cents a share on revenue of between $545 million and $555 million. Wall Street's current consensus estimate is for a profit of 9 cents a share on revenue of $532.1 million. The company attributed its strong performance in the first quarter to sequential growth of nearly 5% in revenue from its storage networking products business and a huge leap in demand for its international Ethernet products business, which saw a sequential increase in revenue of 30%, led by growth in the EMEA Europe, Middle East and Africa and the Asia-Pacific regions. Brocade shares are down about 15% in the past year; although they've seen a bounce since scraping a 52-week low of $4.64 in late August and are up 8.6% since the start of 2011. Wall Street was split on the stock headed into the report. Of the 34 analysts covering the stock, nine are at strong buy, seven are at buy and 18 say hold.

Blue Coat Systems

Shares of Blue Coat Systems fell after the company's latest results and outlook came in below Wall Street's expectations. The Sunnyvale, Calif.-based company, which provides Web security and network optimization products and services, posted an adjusted profit of $16.7 million, or 34 cents a share, for its fiscal third quarter ended in January on revenue of $122.9 million. That performance was slightly below its year-ago equivalent earnings of $18.1 million, or 38 cents a share, as well as shy of the average estimate of analysts polled by Thomson Reuters for a profit of 36 cents a share on revenue of $125.1 million in the January period. The shares dropped 8.3% to $27.99 on volume of around 110,000 in late trades. Based on a regular session close at $30.52, Blue Coat shares were flat so far in 2011 and up a roughly 10% in the past year, below the gains seen in the broad U.S. equity indices, such as the S&P 500, which is up 22% over the same span.


Shares of Nordstrom pulled back in after-hours action after the company reported decent fourth-quarter earnings and announced an agreement to acquire HauteLook, a privately held online fashion retailer known for holding limited-time sales events for high-end fashion brands. While Seattle-based Nordstrom's earnings of $1.04 a share for the January-ended quarter topped Wall Street's estimate for a profit of $1 per share, the company is paying $180 million in stock for HauteLook. The deal also includes a potential three-year earnout provision that could lead to Nordstrom forking over another $90 million worth of stock if the HauteLook business meets or exceeds certain performance goals. The stock was last quoted at $45.16, down 2.8%, on volume of nearly 215,000, according to Nasdaq.com. Nordstrom shares are up nearly 33% in the past year, and hit a new 52-week high $47.15 during Thursday's regular session. Nordstrom expects the HauteLook deal to close in the first quarter and expects the transaction to be dilutive to earnings for the whole of fiscal 2011.

Red Robin Gourmet Burgers

Red Robin Gourmet Burgers was sizzling in after-hours trades, gaining almost 10% to $23.16 on volume of around 50,000. The buying was followed the company's fourth-quarter results as the Greenwood Village, Colo.-based restaurant operator more than doubled the average analysts' view. For the three months ended Dec. 26, Red Robin reported adjusted earnings of $1.9 million, or 12 cents a share, on revenue of $192.6 million, besting the average estimate of analysts polled by Thomson Reuters for a profit of 5 cents a share in the quarter on revenue of $191 million. --Written by Michael Baron in New York. >To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: tips@thestreet.com