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.
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 QLogic 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 QLogic 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. The Motley Fool has no positions in the stocks mentioned above. 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.