Brocade Communications Systems Beats Up on Analysts Yet Again
Brocade Communications Systems (NAS: BRCD) reported earnings on Thursday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q2), Brocade Communications Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share increased significantly.
Margins grew across the board.
Brocade Communications Systems booked revenue of $543 million. The 27 analysts polled by S&P Capital IQ expected sales of $540.9 million on the same basis. GAAP reported sales were 0.9% lower than the prior-year quarter's $548.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 28 earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. 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.
For the quarter, gross margin was 62%, 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%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $540.3 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 $0.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 723 members rating the stock outperform and 45 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Brocade Communications Systems a green thumbs-up, and five 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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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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