Brocade Communications Systems Outruns Estimates Again
Brocade Communications Systems (NAS: BRCD) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 28 (Q1), Brocade Communications Systems beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Brocade Communications Systems reported revenue of $561.0 million. The 25 analysts polled by S&P Capital IQ looked for revenue of $542.0 million on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $546.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.20. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.13 per share on the same basis. GAAP EPS of $0.12 for Q1 were 100% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.5%, 270 basis points better than the prior-year quarter. Operating margin was 12.4%, 460 basis points better than the prior-year quarter. Net margin was 10.4%, 540 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $537.0 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $0.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 733 members out of 779 rating the stock outperform, and 46 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Brocade Communications Systems a green thumbs-up, and six 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 $5.81.
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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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