The 10-second takeaway
For the quarter ended Dec. 30 (Q3), QLogic beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins dropped.
QLogic reported revenue of $119.4 million. The 13 analysts polled by S&P Capital IQ looked for revenue of $116.0 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $152.7 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 $0.20. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.14 for Q3 were 53% lower than the prior-year quarter's $0.30 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 67.3%, 140 basis points better than the prior-year quarter. Operating margin was 12.1%, 980 basis points worse than the prior-year quarter. Net margin was 11.1%, 860 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $111.4 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $475.7 million. The average EPS estimate is $0.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 274 members out of 291 rating the stock outperform, and 17 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give QLogic a green thumbs-up, and one 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 $10.36.
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