Brocade Communications Systems (Nasdaq: BRCD ) reported earnings on Aug. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 28 (Q3), Brocade Communications Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Margins expanded across the board.
Brocade Communications Systems chalked up revenue of $555.3 million. The 25 analysts polled by S&P Capital IQ expected revenue of $536.8 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $502.9 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 $0.14. The 26 earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. GAAP EPS of $0.09 for Q3 were much higher than the prior-year quarter's $0.00 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 61.3%, 30 basis points better than the prior-year quarter. Operating margin was 12.6%, 580 basis points better than the prior-year quarter. Net margin was 7.8%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $569.3 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $0.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 718 members out of 762 rating the stock outperform, and 44 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 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 $6.04.
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