The 10-second takeaway
For the quarter ended Oct. 31 (Q1), Aruba Networks beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share.
Gross margins grew, operating margins increased, net margins contracted.
Aruba Networks logged revenue of $144.5 million. The 21 analysts polled by S&P Capital IQ expected a top line of $142.5 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $119.4 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 $0.18. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS were -$0.01 for Q1 compared to $0.00 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 70.8%, 150 basis points better than the prior-year quarter. Operating margin was 3.1%, 180 basis points better than the prior-year quarter. Net margin was -0.6%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $149.0 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $610.5 million. The average EPS estimate is $0.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 286 members out of 313 rating the stock outperform, and 27 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 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 $22.18.
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