The 10-second takeaway
For the quarter ended Sep. 30 (Q2), QLogic met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted significantly.
Gross margins increased, operating margins dropped, net margins dropped.
QLogic booked revenue of $117.9 million. The 13 analysts polled by S&P Capital IQ expected revenue of $117.3 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $150.2 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 $0.18. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS of $0.13 for Q2 were 54% lower than the prior-year quarter's $0.28 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 66.9%, 90 basis points better than the prior-year quarter. Operating margin was 11.0%, 1,030 basis points worse than the prior-year quarter. Net margin was 10.1%, 900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $126.8 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $497.2 million. The average EPS estimate is $0.88.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 251 members out of 268 rating the stock outperform, and 17 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give QLogic a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QLogic is hold, with an average price target of $12.88.
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