Brocade Communications Systems Earnings Are on Deck

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Brocade Communications Systems (NAS: BRCD) is expected to report Q3 earnings on Aug. 16. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Brocade Communications Systems's revenues will expand 6.8% and EPS will increase 33.3%.

The average estimate for revenue is $536.9 million. On the bottom line, the average EPS estimate is $0.12.


Revenue details
Last quarter, Brocade Communications Systems recorded revenue of $543.0 million. GAAP reported sales were 0.9% lower than the prior-year quarter's $548.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.15. GAAP EPS of $0.08 for Q2 were 60% higher than the prior-year quarter's $0.05 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 62.0%, 210 basis points better than the prior-year quarter. Operating margin was 9.5%, 110 basis points better than the prior-year quarter. Net margin was 7.2%, 240 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.21 billion. The average EPS estimate is $0.61.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 718 members out of 764 rating the stock outperform, and 46 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Brocade Communications Systems a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brocade Communications Systems is hold, with an average price target of $6.27.

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The article Brocade Communications Systems Earnings Are on Deck originally appeared on Fool.com.

TMFBent has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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