Emulex Catches Analysts Sleeping Again
Emulex (NYS: ELX) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 1 (Q2), Emulex met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share dropped.
Margins increased across the board.
Emulex booked revenue of $128.7 million. The six analysts polled by S&P Capital IQ foresaw sales of $127.8 million. Sales were 13% higher than the prior-year quarter's $114.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.26. The six earnings estimates compiled by S&P Capital IQ predicted $0.24 per share on the same basis. GAAP EPS were -$0.08 for Q2 compared to -$0.47 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 62.6%, 790 basis points better than the prior-year quarter. Operating margin was 9.1%, 2,320 basis points better than the prior-year quarter. Net margin was 11.7%, 4,750 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $123.0 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $499.3 million. The average EPS estimate is $0.78.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Emulex is outperform, with an average price target of $8.56.
The game is changing for makers of communications equipment, and some of the old guard may not make it. Where will Emulex fit in? Who's going to lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Emulex to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.