The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Aruba Networks met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share increased.
Gross margins grew, operating margins grew, net margins shrank.
Aruba Networks logged revenue of $126.3 million. The 19 analysts polled by S&P Capital IQ expected revenue of $125.2 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $93.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.16. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share on the same basis. GAAP EPS were -$0.11 for Q2 against -$0.03 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 71.9%, 140 basis points better than the prior-year quarter. Operating margin was 0.4%, 320 basis points better than the prior-year quarter. Net margin was -9.0%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $131.6 million.
Next year's average estimate for revenue is $516.8 million. The average EPS estimate is $0.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 291 members out of 325 rating the stock outperform, and 34 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 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 $26.06.
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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 may not 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.