QLogic Outruns Estimates Again
QLogic (NAS: QLGC) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 1 (Q3), QLogic beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly, and GAAP earnings per share dropped significantly.
Margins shrank across the board.
QLogic reported revenue of $152.7 million. The 11 analysts polled by S&P Capital IQ looked for net sales of $150.2 million. Sales were 2.0% lower than the prior-year quarter's $155.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.36. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share on the same basis. GAAP EPS of $0.28 for Q3 were 36% lower than the prior-year quarter's $0.47 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 65.9%, 10 basis points worse than the prior-year quarter. Operating margin was 21.9%, 410 basis points worse than the prior-year quarter. Net margin was 19.7%, 1,260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $138.1 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $592.2 million. The average EPS estimate is $1.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 241 members out of 256 rating the stock outperform, and 15 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give QLogic a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QLogic is hold, with an average price target of $15.77.
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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 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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