The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Aruba Networks met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share increased.
Gross margins grew, operating margins grew, net margins shrank.
Aruba Networks logged revenue of $126.3 million. The 19 analysts polled by S&P Capital IQ expected revenue of $125.2 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $93.9 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 $0.16. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share on the same basis. GAAP EPS were -$0.11 for Q2 against -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 71.9%, 140 basis points better than the prior-year quarter. Operating margin was 0.4%, 320 basis points better than the prior-year quarter. Net margin was -9.0%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $131.6 million.
Next year's average estimate for revenue is $516.8 million. The average EPS estimate is $0.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 291 members out of 325 rating the stock outperform, and 34 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Aruba Networks a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aruba Networks is outperform, with an average price target of $26.06.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Aruba Networks fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Aruba Networks to My Watchlist.