3Com shares hit the roof
3Com shares reach a 52-week high, following an earnings announcement that exceeded analysts expectations.
3Com shares rose to 63-5/8 a share in morning trading, surpassing the 52-week high of $58 a share. The company's stock closed at 56-5/8 the previous day.
3Com, a producer of computer networking systems, said its first quarter net profits climbed to $93.1 million, or 52 cents a share, for the quarter ending August 31, up 62 percent from a year ago when earnings were $57.4 million, or 33 cents per share.
Analysts had expected 3Com to earn 50 cents a share based on Zacks Investment Research.
The company attributed its jump in profits to stronger sales of its systems products that range from switches to hubs.
Sales reached $707 million for the quarter, up 42 percent from a year earlier.