Brocade Communications Systems
The 10-second takeaway
For the quarter ended Oct. 27 (Q4), Brocade Communications Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Gross margins grew, operating margins dropped, net margins increased.
Brocade Communications Systems tallied revenue of $578.4 million. The 25 analysts polled by S&P Capital IQ hoped for sales of $566.0 million on the same basis. GAAP reported sales were 5.1% higher than the prior-year quarter's $550.5 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 $0.17. The 27 earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. GAAP EPS were $0.11 for Q4 compared to -$0.01 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 62.3%, 20 basis points better than the prior-year quarter. Operating margin was 14.8%, 10 basis points worse than the prior-year quarter. Net margin was 9.3%, 1,010 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $574.9 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $2.30 billion. The average EPS estimate is $0.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 721 members out of 765 rating the stock outperform, and 44 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Brocade Communications Systems a green thumbs-up, and six 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 $6.34.
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