The 10-second takeaway
For the quarter ended Feb. 29 (Q1), Xyratex missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and GAAP earnings per share grew significantly.
Margins increased across the board.
Xyratex booked revenue of $295.7 million. The five analysts polled by S&P Capital IQ expected revenue of $316.5 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $360.5 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 $0.40. The five earnings estimates compiled by S&P Capital IQ predicted $0.26 per share on the same basis. GAAP EPS of $0.38 for Q1 were 153% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.9%, 420 basis points better than the prior-year quarter. Operating margin was 3.6%, 280 basis points better than the prior-year quarter. Net margin was 3.7%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $337.2 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $1.42.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 261 members rating the stock outperform and 22 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Xyratex 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 Xyratex is outperform, with an average price target of $16.20.
Looking to profit from the makers of computer hardware? You may be missing something obvious about where the money will be made in the tech industry of the future. Is Xyratex on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Xyratex to My Watchlist.