Gigamon (GIMO) Surges On Earnings Beat

Shares of Gigamon Inc. (GIMO) are up $4.71, or almost 20%, at $28.30 in early trading, after the networking hardware company this morning beat Q1/15 expectations. Gigamon posted non-GAAP EPS of $0.13 per share on revenue of $46.9 million, up 48% yoy, surpassing Street forecasts of $0.07 per share on $42.4 million. GAAP net loss was $0.7 million, or $0.02 per share, compared to GAAP net loss of $8.2 million, or $0.26 per share, in Q1/14. The stock is currently trading on heavy volume with 900K shares changing hands, well ahead of its three month daily average of 349K shares.

“Our solid performance in the first quarter demonstrates the health and strength of the Traffic Visibility market,” said in a statement Paul Hooper, chief executive officer of Gigamon. “With network professionals continuing to turn to our solutions and technology to deliver visibility across networks of all scale and complexity, and an increasing volume of security teams also realizing that visibility is mission-critical, our industry leading products have positioned us to capture market share and expand our reach within new and existing customers.”

Profitability-wise, GIMO has a t-12 profit and operating margin of (25.96%) and (12.65%), respectively. The $938.26 million market cap company, which was upgraded to ‘Buy’ from ‘Neutral’ at DA Davidson following earnings results, reported $77.91 million in cash in its most recent quarter.

GIMO currently prints a one year return of about 45.17%, compared with an 13.39% gain in the S&P 500 index.

The chart below shows where the equity has traded over the last 52 weeks.

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