The 10-second takeaway
For the quarter ended Jan. 1 (Q2), Emulex met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share dropped.
Margins increased across the board.
Emulex booked revenue of $128.7 million. The six analysts polled by S&P Capital IQ foresaw sales of $127.8 million. Sales were 13% higher than the prior-year quarter's $114.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.26. The six earnings estimates compiled by S&P Capital IQ predicted $0.24 per share on the same basis. GAAP EPS were -$0.08 for Q2 compared to -$0.47 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 62.6%, 790 basis points better than the prior-year quarter. Operating margin was 9.1%, 2,320 basis points better than the prior-year quarter. Net margin was 11.7%, 4,750 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $123.0 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $499.3 million. The average EPS estimate is $0.78.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Emulex is outperform, with an average price target of $8.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.