Aruba Networks (Nasdaq: ARUN ) reported earnings on Thursday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q3), Aruba Networks met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Aruba Networks logged revenue of $131.9 million. The 20 analysts polled by S&P Capital IQ hoped for revenue of $131.6 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $105.8 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 $0.16. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.16 per share. GAAP EPS of $0.05 for Q3 were 67% higher than the prior-year quarter's $0.03 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 70.0%, 230 basis points better than the prior-year quarter. Operating margin was 2.5%, 480 basis points better than the prior-year quarter. Net margin was 4.6%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $137.4 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $515.1 million. The average EPS estimate is $0.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 290 members rating the stock outperform and 31 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Aruba Networks a green thumbs-up, and 10 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 $26.28.
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.