Hewlett-Packard Company (HPQ) may consider buying Brocade Communications Systems Inc. (BRCD), as the latter has put itself up for sale. Brocade, which sells routers, switches and software to help companies manage networks, is scouting for potential buyers. The process is in the nascent stages and HP is a strong contender in buying the company as both companies share a similar line of business. Hewlett-Packard’s acquisition of Brocade will strengthen its grip on the networking equipment market. The company is one of the leading personal computer (PC) makers in the world. It also manufactures servers, which are used by companies in data center operations across the globe. We believe that the addition of the networking product line will increase HP’s global market share in this segment and strongly position it versus other leading PC manufacturers that are increasingly moving in the same direction. Historically, the ...

Brocade Communications Systems Inc. (BRCD) posted second-quarter results this morning that came in ahead of Wall Street expectations.

The maker of networking equipment reported adjusted earnings of 11 cents per share, topping the consensus estimate by 5 cents.

Brocade's revenue grew 43% to a record $506.3 million. CEO Michael Klayko said the growth was driven by strong customer demand for end-to-end networking solutions.

The full-year consensus estimate has remained stagnant at 33 cents per share over the past 60 days. Meanwhile, next-year's average forecast has moved up a penny over the past 30 days to 44 cents per share.

Shares of the Zacks #3 Rank ("Hold") company have surged more than 10% to $6.9 in morning trade on volume of approximately 11.9 million, compared to average daily volume of about 16.8 million.

"BRCD" Free Stock Analysis: Buy? Sell? Hold?Zacks ...