The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Emulex met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share expanded.
Gross margins dropped, operating margins grew, net margins increased.
Emulex tallied revenue of $119.3 million. The 14 analysts polled by S&P Capital IQ expected to see revenue of $120.1 million on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $118.4 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 $0.19. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS were $0.01 for Q1 compared to -$0.08 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 62.1%, 90 basis points worse than the prior-year quarter. Operating margin was 5.6%, 960 basis points better than the prior-year quarter. Net margin was 0.6%, 660 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $129.0 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $502.2 million. The average EPS estimate is $0.73.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Emulex is hold, with an average price target of $8.05.
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