The 10-second takeaway
For the quarter ended April 1 (Q3), Emulex beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins increased across the board.
Emulex booked revenue of $125.7 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $123.3 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $112.1 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 $0.21. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.18 per share on the same basis. GAAP EPS were $0.10 for Q3 against -$0.21 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 63.6%, 870 basis points better than the prior-year quarter. Operating margin was 6.4%, 1,610 basis points better than the prior-year quarter. Net margin was 6.9%, 2,350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $129.6 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $500.2 million. The average EPS estimate is $0.78.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Emulex is hold, with an average price target of $10.56.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Emulex fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Emulex to My Watchlist.
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.