ADC Telecommunications Inc (NASDAQ: ADCT), the Minnesota-based telecommunications equipment provider, nicely surprised Wall Street last night with better than expected revenue and earnings.

ADC reported Q3 earnings per share of $0.37 versus consensus estimate of $0.23. Revenue came in at $346 million versus consensus $333 million. The company increased guidance for the year slightly to $1.31 billion versus consensus $1.29 billion. However, EPS is being hiked nicely to $1.11-$1.15 per share versus consensus $0.92.

"Even though several key customers have not yet returned to normal spending following their mergers, we had better than expected strength in our connectivity, wireless and services businesses, and have seen resumed sales growth outside the United States," said Robert E. Switz, the company's president and CEO, in a statement.

However, despite management optimism, analysts are keeping their neutral ratings on the equipment provider, with both Merrill and Jefferies citing elusive revenue growth. The stock took a nice jump in after hours trading, up over $1.00.

I wouldn't chase the stock following its after-hours rally, but would wait for a pull back and then consider buying. Margins and cash are improving along with the industry's spending pattern.