Why Infoblox Inc. Stock Stepped Higher Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What:Shares of Infoblox Inc jumped more than 10% Friday after theautomated network-control specialist announced better-than-expected fiscal second quarter 2015 results.

So what: Quarterly net revenue climbed 22% year over year to $74.3 million, which translated to adjusted net income of $5.3 million, or $0.09 per diluted share. On a non-adjusted GAAP basis Infoblox posted a net loss of $7 million, or $0.13 per share. But analysts, on average, were expecting lower earnings (on a non-GAAP basis) of $0.05 per share with sales of $68.2 million.

"In the quarter, strengthening demand for our DDI, security and cloud solutions drove both year-over-year and sequential revenue growth in all three geographic regions." stated Infoblox CEO Jesper Andersen. "We also experienced a strong quarter from a new customer acquisition standpoint and added approximately 250 customers."

Now what:For the current quarter, Infoblox anticipates net revenue of $74 million to $76 million, which should result in adjusted net income per diluted share of $0.06 to $0.08. Again, the mid-point of both ranges sits above Wall Street's expectations, which called for fiscal third quarter 2015 earnings of $0.06 per share on sales of $70.9 million.

All things considered, shares of Infoblox may not look cheap trading around 60 times next year's expected earnings, but that's not entirely surprising for a company pursuing top-line growth and on the cusp of sustained profitability. In the end, while I'm not personally inclined to dive in right now, I can't blame the market for bidding up shares of Infoblox today.

The article Why Infoblox Inc. Stock Stepped Higher Today originally appeared on Fool.com.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.