Cisco (CSCO) supplier Cavium (CAVM) is one of 2014’s successful comeback stories. After a not-so-great 2013, Cavium has successfully turned the corner and is up almost 60% so far this year. The company’s growth is being driven by the increasing adoption of its products in data centers and other wireless applications such as the Internet of Things. In fact, in the first quarter, Cavium delivered a solid year-over-year revenue jump of 20%, along with a whopping 58% increase in earnings.
Solid results in second quarter
Cavium reported its second-quarter results in the month of July wherein it beat the topline growth estimate quite comfortably. Its second-quarter revenue came in at $90.7 million, representing a jump of 22% y-o-y whereas the Street was expecting a jump of 21.3% in revenue. Because of a robust topline growth, the company was able to beat the Street estimates on bottomline as well with an earnings of $0.35 per diluted share thereby exceeding the $0.33 per share estimate.
— Guru Focus