Let’s talk about Infoblox (NYSE:BLOX).
Continue Reading Below
In the last couple years, it was a grand slam, then a grand disaster. Now, it's back to being a grand slam. They've beaten the Street in each of the last four quarters.
In the last four quarters, they beat consensus by 133, 267 (and 80% above of what the Street thought). Why? They've got a really great unique situation with their IT infrastructure, which they call the DDI solution. It creates a virtual environment, it’s also for IP addresses. It's an amazing product. The adoption of it has been absolutely phenomenal.
Last quarter, revenues were up 11% quarter-over-quarter, 22% year-over-year. Margins are going up nicely. They're 80% in the gross margin and they're starting to bring money into the bottom line.
I love this name. It actually peaked at $47 back in October 2013. You're looking at what I call a true breakout. What's that? When a company moves to a new 52-week high on better-than-average volume. I think it goes to $30, and I think it even goes higher than that.