Brocade Communications Systems
The 10-second takeaway
For the quarter ended Oct. 27 (Q4), Brocade Communications Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Gross margins grew, operating margins dropped, net margins increased.
Brocade Communications Systems tallied revenue of $578.4 million. The 25 analysts polled by S&P Capital IQ hoped for sales of $566.0 million on the same basis. GAAP reported sales were 5.1% higher than the prior-year quarter's $550.5 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 $0.17. The 27 earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. GAAP EPS were $0.11 for Q4 compared to -$0.01 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 62.3%, 20 basis points better than the prior-year quarter. Operating margin was 14.8%, 10 basis points worse than the prior-year quarter. Net margin was 9.3%, 1,010 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $574.9 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $2.30 billion. The average EPS estimate is $0.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 721 members out of 765 rating the stock outperform, and 44 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Brocade Communications Systems 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 Brocade Communications Systems is hold, with an average price target of $6.34.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Brocade Communications Systems 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 Brocade Communications Systems 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.