Good Growth, Conservative Outlook at Ruckus Wireless

You know expectations are high when a stock rallies 21 percent headed into earnings. That's exactly what Ruckus Wireless (Nasdaq: RKUS) did from Friday to Tuesday ahead of its earnings report after the close Tuesday.It's usually not enough for a high-multiple stock to beat earnings and sales targets. The outlook has to be rock solid as well and that's where Ruckus came up a bit short.Quarterly profit was flat from a year ago at $0.07 a share, above the consensus estimate of $0.05. Sales came in a little better than expected, rising 51 percent to $62.2 million. Analysts were looking for $60.5 million.Ruckus said it expects first quarter earnings of $0.03 to $0.04 a share on revenue of $62 billion to $64 billion. The current consensus earnings estimate is $0.03 a share on revenue of $62.6 million.As a provider of Wi-Fi solutions to service providers and enterprises, Ruckus is well positioned for growth. Market research firm Infonetics expects the service provider Wi-Fi market to grow from approximately $300 million in 2011 to $2.8 billion by 2016.The company went public in November at $17 and has been an outstanding performer since its debut. It has a market capitalization of $1.9 billion. Ruckus' product offerings continue to see strong demand and growth prospects look good which is why it sells at a premium valuation.It was a decent quarter but conservative guidance spooked investors. Shares fell nearly 13 percent to 22.56 in pre-market trading.