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The Gigamon stock price is soaring today (Friday) after handily beating Q3 2016 earnings estimates.
Shares of Gigamon Inc. (NYSE: GIMO), which provides global customers with visibility and control of network traffic, surged more than 18% to a 52-week high of $56.38 in morning trading.
Trading volume for GIMO stock was heavy. Roughly 1.82 million shares changed hands just an hour into Friday's session. That was more than double Gigamon stock's average daily volume of 878,593 over the last month.
Here's a closer look at what's driving Gigamon stock today…
Gigamon Stock's Biggest Catalysts Today
The company posted EPS of $0.36. That was $0.05 better than forecasts. Revenue for the quarter came in at $83.5 million, also easily topping estimates of $79.56 million.
Gigamon logged 54.5% year-over-year earnings growth in Q3. That was the eighth consecutive quarter of growth. Demand from the government sector was notably strong, with 103% YOY growth, which accounted for 22% of the company's total revenue.
Gigamon continues to invest in its platform and solutions. The company's new GigaVUE-HC1 product extends its GigaSECURE Security Delivery Platform to mid-sized enterprises. Gigamon also announced a major tier 1 win with AT&T Inc. (NYSE: T) as a service provider. The company said this is designed not only for network function visibility (NFV), but also cloud service integration.
The company also announced a change in leadership…
Rex Jackson will succeed Mike Burns as the new chief financial officer. Jackson previously served as CFO for Rocket Fuel, JDS Uniphase, Symyx, and Synopsys. Burns, CFO since 2014, will stay on in an advisory capacity to ensure a seamless transition.
Looking ahead to Q4, Gigamon expects EPS in a range of $0.36 to $0.38 per share. That's ahead of Capital IQ consensus estimates of $0.31. The company expects revenue of $91 million to $93 million versus Wall Street's $86.39 million estimate.
That strong guidance has been another catalyst for the Gigamon stock price today…
D.A. Davidson expects more of the same for Q4 earnings. But given the recent run-up in the GIMO stock price and its current valuation, Davidson reiterated its "Neutral" rating on Gigamon stock.
While Gigamon is one of today's hottest stocks, it is not one that we recommend at Money Morning. Instead, we're bringing readers our carefully selected list of stocks for investors looking for lucrative long-term and sustainable opportunities…
- Thomson Reuters: Edited Transcript of GIMO Earnings Conference Call or Presentation 27-Oct-16 9:00pm GMT
- Street Insider: Gigamon (GIMO) Tops Q3 EPS by 5c; CFO Jackson Resigns
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